MoU inked for funding key projects
It has been ten years since the China-Pakistan Economic Corridor (CPEC), the multibillion-dollar flagship project under President Xi Jinping’s $1.4 trillion Belt and Road Initiative, was launched. PHOTO: FILE
The National Bank of Pakistan (NBP) has agreed to partner with China-Pakistan International Silk Road Industry Investment Management Company Limited by signing a memorandum of understanding (MoU) to facilitate investment in key projects for promotion of industrial cooperation between the two countries.
Under the MoU, they will support the establishment of Special Economic Zones (SEZs), different sectors of the economy and bilateral trade.
Economic Minister Embassy of Pakistan in Beijing Aslam Chaudhary, Liu Jiang Hua from the China-Pakistan International Silk Road Industry Investment Management Company Limited, representatives from Dan Zhou Government, Hai Nan province, Zhang Yu Bo, MCC and Bank of Tianjin witnessed the signing ceremony held at the Pakistan embassy on Saturday.
The event was also joined virtually by Riaz Hussain, SEVP and Group Chief, International, Financial Institutions and Remittances Group and Hasan Jamal, SVP, Investment Banking Group, NBP Head Office, Karachi.
Addressing the participants on the occasion, Aslam Chaudhary briefed them about the incentives offered by the present government to attract foreign investment, especially from China.
He informed the audience that SEZs were being established across Pakistan where Chinese enterprises could relocate their industries and export products to different countries by taking advantage of preferential agreements signed by Pakistan with various countries.
The economic minister said that Pakistan having a population of over 225 million was itself a big market and Chinese companies could benefit from it.
He said that the government was focusing on industrialisation in the second phase of China-Pakistan Economic Corridor (CPEC) and offering opportunities in various sectors.
He invited Chinese entrepreneurs to come to Pakistan and avail themselves of the facilities and incentives for setting up their industrial units.
Chaudhary was of the view that the MoU would help Chinese companies to invest in different projects and promote industrial cooperation between the two countries.
Speaking on the occasion, NBP Chief Representative Sheikh Muhammad Shariq told the audience that the NBP was the largest state-owned bank and amongst the important banks of Pakistan.
It is operating with 18 overseas branches located in South Asia, Central Asia, the Middle East, Western Europe and North America.
He pointed out that the NBP was amongst the major lenders to projects under CPEC and handling a large proportion of bilateral trade between China and Pakistan.
“We also maintain the largest portfolio of corporate and investment banking in Pakistan,” he added.
Shariq said that the MoU represented a commitment to fostering stronger ties, enhancing financial cooperation, and exploring new opportunities for growth and innovation.
It would also help NBP to open a branch in China to further facilitate bilateral trade and through the partnership, the bank aimed to leverage its collective expertise and resources to develop cutting-edge financial solutions, support sustainable economic development, and better serve the two communities, he added.
Board of Investment (BOI) Pakistan Honorary Investment Counsellor Philip Jian Peng welcomed the guests and thanked them for their support as the two sides embarked on an exciting new chapter.
Senior officials and a large number of representatives of various Chinese companies were present.
Published in The Express Tribune, June 2nd, 2024.
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