KARACHI, April 3: The Barclays Bank has established its first office in Karachi. However, the bank is yet not functional.

Barclays was granted banking licence by the State Bank of Pakistan in December last, making it 7th foreign bank to operate in the country.

Sources said that the Barclays has established its offices at Dawood Centre in the heart of the city.

“I know that the Barclays have already started constituting their treasury team while a high-profile treasurer of a large Pakistani bank has been hired to lead the team,” said the banking sources.

Mohsin Nathani has already been appointed country head and MD of Barclays in Pakistan.

Barclays will be established in Pakistan as a foreign banking company and will operate in branch mode, with a capital of US$100 million and will initially set up 10 branches in various cities of the country.

As per agreements of the licence, Barclays will need to comply with the SBP guidelines, if it plans for conversion of its status from branch mode to a local subsidiary.

Industry experts believe that Pakistani operations of Barclays will benefit significantly from the synergies and knowledge that Barclays, as one of the largest financial services providers, can offer.

Banking industry believes that the entry of Barclays in Pakistan would not only strengthen banking system of the country but would also bring a significant amount of foreign direct investment and technology to launch innovative financial products.