KARACHI: Ms Li Tong, chairperson and CEO of Bank of China International (BoCI), visited the State Bank and discussed banking cooperation between the two countries. The BoCI is a wholly-owned subsidiary of Bank of China.

She was accompanied by Ms Cheng Yan MD and Vice Chairman, Michae Cheng and Wang Jia and local representatives.

Ms Li Tong headed a group of more than 20 businessmen, including CEO’s of mega companies, to explore further cooperation between Pakistan and China in the field of energy, infrastructure development, transport, manufacturing, mining and banking.

“Closer cooperation in the banking sector will assist in strengthening relationship further with China. The number of mega projects, which Chinese companies are implementing in Pakistan, necessitates smooth and efficient banking arrangements to meet the banking needs,” said the Acting Governor State Bank Saeed Ahmad in the meeting to welcome Ms Li Tong of Bank of BoCI.

The BoCI is the investment banking unit of BoC having huge assets over $2.26 trillion and share capital of $45 billion while its presence is in 42 countries. It has been a Fortune Global 500 entity for the last two decades.

The visit by BoCI chairperson to SBP in Islamabad was meant to discuss the possibility of opening a branch of BoCI in Pakistan. Ms Tong appreciated the warm reception extended to her by SBP and the brief given to her about the process and requirements of establishing a foreign bank, a branch or a subsidiary in Pakistan.

The State Bank informed her about the close working relationship which exists between People Bank of China (PBC) — the Central Bank and SBP and the Currency Swap Agreement which has been in place between the two countries.

Ms Tong was apprised about Industrial and Commercial Bank of China (ICBC) which has branches in Islamabad and Karachi and is in the process of opening the third branch in Lahore. The experience of ICBC in Pakistan has been good. Though there is no Pakistani bank branch in China, but negotiations are at advanced stage to establish a branch of a leading Pakistani bank there in near future.

Mr Saeed reminded the CEO of BoCI that currently Pakistan enjoys the privilege of being a member a group of the countries which are allowed to participate in the local bond market in China.

Also an MoU signing ceremony in Beijing is scheduled to take place in the last week of October to establish Asia International Infrastructure Bank for which Pakistan is one of the founding members.

Ms Tong and her team showed interest in undertaking further work in order to establish BoCI presence in Pakistan.

Published in Dawn, October 17th, 2014