ICBC promotes BRI, CPEC for 10 years in Pakistan

Karachi: Industrial and Commercial Bank of China (ICBC) has been promoting the Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC) for 10 years, the bank said.

ICBC Karachi Branch and Islamabad sub-branch were officially established on May 20, 2011. Subsequently, the Lahore sub-branch was inaugurated by the leaders of China and Pakistan on 20th April 2015, the ICBC noted in a statement.

ICBC Karachi Branch completed its early layout in Pakistan and formed a service pattern of “One body two wings with full scope of service coverage,” that is with Karachi Branch as body and Islamabad and Lahore Branch as its wings to extend its service coverage to Pakistan.

With 10-year struggle and deep development, ICBC Karachi Branch is always following its original aspiration to support the BRI, keeping in mind the mission of serving the “China-Pakistan Economic Corridor,” continuously promoting the economic and trade cooperation between China and Pakistan, and strengthened its support for the economic development of Pakistan, and has become one of the overseas institution with “complete product system, high professional quality, excellent public and local banks reputation, sustainable business development,” read the statement.

Industrial and Commercial Bank of China was established on 1st January 1984. In 2005, ICBC was wholly restructured to a joint-stock limited company. In 2006, ICBC was simultaneously listed on both the Shanghai Stock Exchange and the Stock Exchange of Hong Kong.

Through its continuous endeavour and stable development, ICBC has developed into the leading bank in the world. The Bank was ranked 1st place among the Top 1000 world banks by The Banker, ranked 1st place in the Global 2000 listed by Forbes, and topped the sub-list of commercial banks of the Global 500 in Fortune for the eighth consecutive year.

Taking a global view and acting along with the globalization tendency, ICBC has implemented the worldwide global strategy with a forward-thinking strategic vision, and its global network layout has become increasingly more efficient.

For years, ICBC Karachi Branch is playing an important role in the “China-Pakistan Economic Corridor.” ICBC Karachi Branch is constantly providing innovative financial products and high-quality banking services to energize the CPEC construction.

Out of a total of 13 power projects which achieved the Commercial Operation Date (COD) or under construction during the 1st phase of the CPEC, ICBC Karachi Branch has provided core financial services to 11 projects and financing to 7 projects by providing one-stop services including syndication for both project loan and working capital loan.

ICBC Karachi Branch has strongly supported the smooth progress of the CPEC projects construction and extensively participated and is deeply involved with prominent achievements of a financial institution in CPEC construction in Pakistan.

As Pakistan’s first qualified RMB Clearing Mechanism, ICBC Karachi Branch has been committed to enhancing the Renminbi (Chinese Currency Yuan, abbreviated as RMB) usage in Pakistan and promoting RMB products innovation, it successively launched a series products portfolio including RMB forwards, swaps, Letter of Credit, Guarantee, and structured trade financing, and has always been the largest RMB market maker and the RMB clearing service provider with the broadest local network and maximum RMB settlement transaction in Pakistan, the statement explained.

In December of 2020, ICBC Karachi Branch became the first bank in South Asia to be qualified as a direct participant in Chartered Institute of Procurement and Supply (CIPS) by the People’s Bank of China (PBOC) and the State Bank of Pakistan (SBP), which indicated RMB clearing facilities will be further improved and strengthened.

ICBC Karachi Branch also plays an important role in promoting trade business between China and Pakistan. On the basis of the local market and relying on ICBC Group’s advantages and global resources, ICBC Karachi Branch has comprehensively built an international clearing and trade financing service system and met the trade financing requirements by providing specialized products such as Cross-border Remittance, Import/Export Letter of Credit, Letter of Credit confirmation, Export Discounting and Import Collection.

ICBC Karachi Branch has provided trade business to more than 150 customers, and issued Guarantees and Letters of Credit (LCs) worth more than USD 5.7 billion since its establishment.

The bank has effectively supported industries including light industry, agriculture, fishery, communications, home appliance manufacturing, and other key trade areas between the two countries.

During the past 10 years, ICBC Karachi Branch devoted to deepening localization and spared no effort to contribute to the local industrial upgrading and economic growth.

Its clients include government agencies, global Top 500 companies, worldwide reputed multinational companies, and local high-quality enterprises from energy, construction and textiles sectors.

The bank has disbursed USD 7.468 billion loan in total which depicts its continuous contribution to the local economic development and enhancement in social influence.

ICBC Karachi Branch always insists on fulfilling the Corporate Social Responsibility (CSR) and enhancing social re-feeding ability, the statement added.

Over the past decade, the bank has paid a total of Pakistani Rs 21.8 billion (US $165 million) tax that has contributed a lot to the growth of local fiscal revenue.

The bank has made public beneficial donations to local’s charitable institution annually including fighting against COVID-19, disaster relief, dam building, poverty alleviation, and bold recognition, and created ICBC’s profile in areas of the relationship between government and bank, green credit, employment and school donation. For fighting against COVID-19, ICBC Karachi Branch donated medical supplies worth Rs 36.68 million and contributed Rs 858,000.

ICBC Karachi Branch was delivered out as the result of the China-Pakistan friendship and the internationalization of ICBC grew along with the construction of the CEPC which is the flagship of the BRO and accompanied by the development of China-Pakistan economic and trade association, the ICBC statement said.