NBP branch: Pakistan wants China to relax its banking rules

Pakistan has decided to request the Chinese government to relax its banking law for minimum requirement of assets to open a National Bank of Pakistan (NBP) branch in China, an official said.
Sources told Business Recorder that Pakistan had already requested for permission from Chinese government to open NBP branch in China but under the Chinese banking law minimum requirement of assets is Rs 20 billion to open a bank in China.
An official said that total assets of NBP are Rs 11 billion and relaxation in banking law by Chinese government would be required to set up its branch in China to facilitate trade between the two countries. The matter was reportedly discussed during the Economic Co-ordination Committee of the Cabinet (ECC) and was also raised by Finance Minister Dr Abdul Hafeez Sheikh during a meeting with the Chinese on Friday. The Minister was reportedly annoyed with line ministries, particularly, Ministry of Commerce and National Highway Authority (NHA) over slow implementation of decisions agreed between Pakistan and China during Chinese Prime Minister Wen Jiabao's visit to Pakistan in December 2010.
Hafeez said that no inaction on the part of any line ministry shall be allowed in the implementation of the decisions and directed the Ministry of Commerce and National Highway Authority (NHA) to vigorously pursue the implementation of decisions.
The Chinese delegation reportedly expressed serious concerns over slow pace of work on Karakoram Highway (KKH) due to non-availability of proper machinery and Minister assured them that NHA would ensure early completion of the work. Chinese delegation said that a team of their experts would arrive in Pakistan on April 10 to repair National Grid Station damaged by the floods. The Chinese delegation also informed the Finance Minister that their country has not yet received response from Pakistan Agriculture Research Council (PARC) to set up a rice processing plant in Pakistan.
Finance Minister chaired a meeting along with Chinese delegation led by Chinese Ambassador to Pakistan Liu Jian on Friday and reviewed the implementation status of a number of projects to be completed with technical and financial assistance of China. In the post flood reconstruction programme, the Chinese government has pledged to support Pakistan in the reconstruction of a number of projects. China has committed to give grants for highways and agriculture sectors.
Under grant for Citizen Damaged Compensation Plan, it was agreed that China would provide assistance for implementation of the plan and provide credit for transport, energy and communication sectors. Both sides had agreed to establish China-Pakistan agricultural technology demonstration zones.
The meeting also deliberated upon the progress in the operationalization and implementation of the agriculture related component under Economic and Technical Co-operation and reviewed the progress in the finance and banking sector. The meeting was informed that Industrial and Commercial Bank of China (ICBC) is coming to Pakistan to open its branches in Karachi and Islamabad.
Under bilateral trade, China is to send more trade missions to Pakistan, and Pakistani traders would be given access and free space in trade exhibition in the cities of Kashghar, Urmuqi, Kensing and Chengdu. The Finance Minister asked the concerned officials to give a comprehensive report on development in this regard.
The other subjects discussed in the meeting related Pakistan's market access by considering grant of unilateral tariff concession to228 Pakistani products, launch of second phase of the Pak-China Free Trade Agreement, in the first quarter of 2011, the Establishment of Pakistan China Entrepreneurs Forum, and exploring possibility of establishing trans-border economic zones.