On November 25th, in the southern city of Karachi, Pakistan, Mohammad Malik, Executive Director of the State Bank of Pakistan (PBOC), delivered a speech at the "10th Anniversary of RMB Internationalization in Pakistan" event held by the Pakistani RMB Clearing Bank (ICBC Karachi Branch). Xinhua News Agency (photo provided by Industrial and Commercial Bank of China Karachi Branch)

Islamabad, November 25 (Xinhua) -- Mohammad Malik, Executive Director of the State Bank of Pakistan, stated on the 25th that Pakistan has a sound regulatory system to support the use and investment of the renminbi.

On that day, the Pakistani RMB Clearing Bank (Industrial and Commercial Bank of China Karachi Branch) held the "10th Anniversary of RMB Internationalization in Pakistan" event in the southern Pakistani city of Karachi. Malik attended the event and delivered a speech on behalf of the Central Bank of Pakistan, stating that the potential of the Chinese yuan in Pakistan is enormous and is expected to further benefit all parties involved. Ba has a sound regulatory system to support the use and investment of RMB. The central bank of Ba has carried out multiple RMB publicity and transaction clearing capacity building work to ensure that enterprises and local banks fully understand the advantages of RMB business.

During an online speech, Zhou Yongkun, Director of the Macro Prudential Management Bureau of the People's Bank of China, stated that in 2024, the RMB receipts and payments for goods trade between China and Pakistan will reach 19.4 billion yuan, accounting for 23% of the cross-border receipts and payments for goods trade in both domestic and foreign currencies during the same period. There is still broad room for development in the future. The People's Bank of China will continue to increase policy support for RMB clearing banks.

Zhang Weiwu, Vice President of Industrial and Commercial Bank of China, stated in his speech that the bank has opened RMB accounts for all 22 mainstream local banks in Pakistan with foreign exchange trading qualifications, and RMB business has shown a good growth trend in Pakistan. Next, ICBC will increase its resource investment efforts, explore providing stable liquidity support for the offshore RMB market, research and launch more innovative RMB businesses, and better meet the financial needs of various market entities in China Pakistan economic and trade exchanges.

Yang Yundong, the Chinese Consul General in Karachi, stated that the current global economic development situation has increasingly highlighted the importance of strengthening financial cooperation between China and Pakistan. China is willing to work with Pakistan to continue facilitating bilateral trade and investment settlement in local currency, expanding RMB service areas, strengthening regulatory communication and coordination between the two sides, and fully leveraging the potential of financial technology in cross-border finance.

In November 2022, the People's Bank of China decided to authorize Industrial and Commercial Bank of China Karachi Branch to serve as the RMB clearing bank in Pakistan.

Editor: Chen Luyi