Pakistan's leading financial institution, HBL, signed partnership agreements with China CITIC Bank and China Chengxin International Credit Rating Company (CCXI), marking another step in expanding the financial cooperation between China and Pakistan as the Bank celebrated the fifth anniversary of its Beijing Branch operation.

The agreements aim to strengthen cross-border financing, RMB business and credit cooperation, as trade and investment links between China and Pakistan continue to deepen, China Economic Net (CEN) reported on Wednesday.

According to HBL, its cooperation with Chinese financial institutions has evolved beyond traditional correspondent banking into co-lending and syndicated financing arrangements that combine the strengths of both sides.

“Chinese banks, particularly policy lenders, provide large-scale funding capacity and expertise in financing infrastructure and energy projects, while HBL contributes with local market knowledge, regulatory experience and execution capabilities in Pakistan,” said Muhammad Nassir Salim, President & CEO – HBL.

To date, HBL has participated in more than US$6 billion worth of China-Pakistan Economic Corridor (CPEC) transactions, serving as an adviser, arranger, lender and equity investor.

“Notably, the China franchise reported a record volume of RMB foreign exchange transactions in 2025, with RMB trade volumes increasing by more than 20 percent year on year,” Mr. Salim said in an interview with CEN.

"There is significant room to increase the adoption of RMB, as our region still conducts only about 10 percent of its transactions in RMB, with the rest settled in third currencies,” he added.

As one of only three banks from South Asia and the MENA region to offer end-to-end RMB intermediation services in China, HBL has introduced a range of RMB-denominated products, including multi-currency letters of credit (LC) advising and confirmation services, RMB LC discounting and RMB liquidity services, covering both onshore (CNY) and offshore (CNH) markets.

According to Standard Chartered's RMB Globalization Index, the currency's international application has nearly doubled over the past three years, driven by rapid growth in cross-border payments, offshore transactions, bond issuance and offshore deposits.

Hu Yonghong, deputy director of the Institute of International Monetary Research at Renmin University of China, noted that 85 countries have now included RMB assets in their official foreign exchange reserves, while more than one-third of China's cross-border trade is settled in RMB.

In the Asia-Pacific, Africa and the Middle East, more than 60 percent of foreign-invested enterprises have begun using RMB in cross-border transactions, she added.

“China’s rising innovation capacity, continued investment in green development and major infrastructure projects, including the development of offshore markets in Shaghai has bolstered RMB adoption in the international economy.

The expansion of infrastructure for cross-border payments has also strengthened the currency’s global role,” she analysed.

China's Cross-border Interbank Payment System (CIPS) now connects participants in more than 120 countries through over 1,500 financial institutions, while new digital RMB cross-border payment platforms are extending services to markets including Singapore, Thailand, Qatar, and Brazil.

“As a next step, HBL plans to expand cooperation in green finance and sustainable development, with agriculture modernization identified as a priority sector, both of which are of vital importance to Pakistan’s future,” Sultan Ali Allana, Chairman– HBL said.

Credit: Independent News Pakistan (INP) — Pak-China