2 min read
The Industrial and Commercial Bank of China (ICBC) has officially set out an expanded roadmap to position Pakistan as South Asia’s financial hub for the renminbi (RMB). This announcement comes as the bank celebrates a decade of successful RMB operations in the country.
According to reports, the local RMB clearing and settlement system has moved from “inception to maturity.” Consequently, all major banks in Pakistan can now conduct RMB-related transactions without barriers.
Zhao Yifei, Director of Treasury and Financial Institutions at ICBC Pakistan, emphasised the system’s resilience. He stated that Pakistan’s RMB repayments would remain secure even under stressed conditions. This security is backed by highly rated foreign central bank counterparties and intra-group institutions.
ICBC 2026 Roadmap: Digital Upgrades & Panda Bonds
ICBC plans to aggressively promote the use of the Chinese currency in Pakistan’s external trade. Beginning in 2026, the bank will enhance its electronic trading channels. This upgrade aims to improve local RMB market-making and reduce spreads. Ultimately, this will support the clearing needs of domestic banks engaged in China-Pakistan trade.
Furthermore, the Government of Pakistan is taking significant steps toward financial integration. Officials are preparing to issue the country’s first renminbi-denominated “Panda bond” early next year.
The push for a regional hub aligns with the currency’s growing dominance. Pakistan remains one of China’s closest economic partners, with CPEC driving major investments. Currently, Pakistan’s bilateral currency swap with China stands at 30 billion yuan.
Muhammad Ali Malik, SBP Executive Director for Financial Markets, highlighted the sharp rise in local adoption. Key statistics include:
- Import Growth: The share of imports from China invoiced in yuan rose from 5.6% in FY16 to 19.1% in FY25.
- Global Reach: The RMB’s share in global FX turnover hit 9% in 2025, a massive jump from just 1% in 2010.
- Reserves: The currency’s share in central bank reserves doubled to 2.2% between 2016 and 2024.
Regulatory Support
The State Bank of Pakistan (SBP) continues to provide a conducive regulatory environment. Regulations now give the RMB equal treatment to other global currencies. This includes permission for exporters to retain RMB proceeds and for banks to open specialised RMB foreign accounts.
ICBC Pakistan CEO Zhou Bo noted that the settlement mechanism, first introduced in 2015, has expanded nationwide. With clearing volumes hitting record highs, the financial architecture for Pakistan is becoming more resilient.
