ISLAMABAD: Bank of China (BoC) formally began its operations in Pakistan on Tuesday, with the official launch performed by President Mamnoon Hussain at Aiwan-e-Sadr.

Addressing the launch ceremony, President Hussain said the bank would play an important role in providing the required resources for promoting commercial activities and developing infrastructure.

He said this development would lead to further improvement in national growth rate, and people — particularly the business community — would be able to effectively assist in making business environment more conducive.

The opening of BoC indicates the benefits of the China-Pakistan Economic Corridor (CPEC) project — which transformed from a dream into reality in the last few years — would soon start reaching the masses and give impetus to active political and economic relations between the two countries, the president said.

China has emerged as a major investor and partner for Pakistan which is a positive development and will lead to materialising the possibilities of development in both the countries, he said.

With the initiation of the CPEC project, infrastructure sector in Pakistan has witnessing splendid growth. Due to sound economic policies of the government, the investment climate in the country had become favourable, he added.

The bank’s entry is expected to speed up trade and economic cooperation under CPEC

The president was confident that the evergreen Pak-China friendship will further grow with the start of BoC’s operations which would speed up trade and economic cooperation between Pakistan and China.

Speaking on the occasion, Governor State Bank of Pakistan, Tariq Bajwa said the BoC, being a key partner in China’s ‘One Belt One Road’ initiative, would be effectively able to cater to the financing needs of CPEC projects by leveraging its specialised services and expertise.

He was confident that the emergence of BoC on the financial horizon of Pakistan will be beneficial for the country’s banking industry. Growing linkages between Pakistan and China would create a better future for all of us, he observed.

He said the presence of BoC in Pakistan is also expected to benefit the banking sector through technology transfers and associated innovation in products and processes, human capital development and improved competition and efficiency in the financial services.

Earlier, acting ambassador of China in Pakistan, Mr Zhao Lijian described the start of operation in Pakistan by the BoC as a milestone. The bank has returned to this part of the world since 1942 when BoC had opened a branch in Karachi, he added.

The said branch along with the Chittagong branch was later transferred to the National Bank of Pakistan in 1971 after the bank closed its operations in the region.

Mr Lijian hoped that the Chinese financial institutions would also enter into the Pakistani market in the near future. BoC would continue to expand its business coverage in the country and play an important role in building Pak-China friendship, he said.

Chairman BoC Chen Siqing said the bank considered Pakistan as a strategic location for its operation. The bank would play its role in the economy of Pakistan and help the country achieve economic gains, he said.

Published in Dawn, November 8th, 2017