It shouldn’t come as a surprise that relations between China and Pakistan are getting stronger. To add more to the claim, the Chinese government is reportedly planning to issue a preparatory license to the National Bank of Pakistan (NBP) to set up its branch in China. It seems that the main aim of both the governments behind this move is to accelerate the CPEC related activities.
The National Bank of Pakistan forwarded a formal letter to the Chinese government in May, expressing interest in establishing their physical presence in the country. In case you’re wondering, the letter has been approved and now the bank has submitted another application to get a preparatory license, which would allow the bank to set up its first branch in China.
It is important to note that NBP, back in 1981, had established a representative office in China. Nevertheless, the financial institution believes that setting up a branch will be much more effective. Many other banks in Pakistan – such as Askari Bank, Bank Al-Habib and United Bank Limited (UBL) – are also providing banking services to big Chinese organizations that are based in Pakistan. It appears that Habib Bank Limited (HBL) has identified the opportunity to establish its presence in China much earlier than other banks as it has already set up a branch in China.
Analysts believe that NBP’s move to set up a branch in China will benefit the bank in the longer run. In any case, we’ll keep a track on the story to keep our readers up to date.