The China-Pakistan Economic Corridor (CPEC) is the landmark of trade and economic cooperation between China and Pakistan. Experts say with the drive from China’s Belt and Road Initiative, the CPEC project will help to rapidly modernize Pakistan's infrastructure and strengthen its economy.

The CPEC, which began with an initial investment of 46 billion US dollars, is the development scheme currently underway throughout the South Asian countries. And The Industrial and Commercial Bank of China (ICBC) has become one of the key players involved in.

As the only Chinese commercial bank to have set up branches in Pakistan, ICBC keeps offering financial services to over 100 local and Chinese enterprises, and recently ICBC announced RMB clearing services to make trade more convenient.

The chief of ICBC Pakistan, He Shenghu, said the branch will not only provide an alternative settlement currency to customers, but also help to place a solid foundation for Pakistan to expand its foreign trade and reserve. 

“ICBC will of course have an advantage in doing this RMB clearing in Pakistan, and I think that with the help and support from the state bank of Pakistan and with the help of the clients both in corporate sector and in the individual sector from china and Pakistan side, ICBC will provide very good financial services and RMB clearing services to the Chinese and Pakistani clients,” He said.

Meanwhile, experts are convinced that ICBC’s new move would facilitate and boost trade and economic cooperation between China and Pakistan.

“I think the RMB clearing in Pakistan is a step in the right direction from China. This will further strengthen the Chinese currency and will indirectly strengthen the Pakistani rupee and will further boost trade,” said Mohammad Rizwan, the president of Karachi Electronics Deawlers association.

While the experts are positive about the arrival of the CPEC, some locals complain that the CPEC projects are being carried out without considering the needs of people and provide little benefit to local residents.

But the Chinese companies working at the port in Gwadar say that they are aware of the concerns and demands of the people and that China is committed to fulfilling their needs. And the arrival of CPEC has indeed opened many opportunities for the locals.

“In 2017, we have a new plan, we are cooperating with a Chinese NGO, and will build a new trauma center near the port, this trauma center will serve the local public and also some investors, it is beneficial for both. Many plans in our project list… we are doing one good job for the locals, and every year we are trying our best to benefit the local people,” said Peter Hu, deputy general manager of Gwadar Free Zone Company of China Overseas Ports Holding Company (COPHC).