The Industrial and Commercial Bank of China (ICBC) has set out an expanded roadmap for renminbi (RMB) internationalisation in Pakistan, saying the country is well-placed to develop into South Asia’s financial hub for the Chinese currency, as reported by The News.
Speaking at an event marking a decade of RMB operations in Pakistan, Zhao Yifei, director of treasury and financial institutions at ICBC Pakistan, said the bank had helped build the local RMB clearing and settlement system from “inception to maturity,” enabling all major banks to conduct RMB-related transactions without barriers.
He said Pakistan’s RMB clearing bank, operated by ICBC, was equipped to support the country’s ambition of becoming a regional hub. With highly rated foreign central bank counterparties and intra-group institutions, Zhao said Pakistan’s RMB repayments would remain secure even under stressed conditions.
ICBC plans to further promote the use of RMB in Pakistan’s external trade and economic cooperation. Zhao said that beginning 2026, the bank will enhance its electronic trading channels to improve local RMB market-making and reduce spreads to support clearing needs of domestic banks engaged in China-Pakistan trade.
China has accelerated its global push for wider RMB use, especially as dollar dominance shows signs of weakening. By mid-2025, the People’s Bank of China had inked currency swap arrangements with 43 central banks and monetary authorities amounting to more than 4.5 trillion yuan. Pakistan’s bilateral swap stands at 30 billion yuan.
Pakistan remains one of China’s closest economic partners, with CPEC driving major investment in energy and infrastructure. The government is also preparing to issue its first renminbi-denominated Panda bond early next year, a step officials believe will deepen financial integration.
ICBC Pakistan CEO Zhou Bo said the RMB settlement mechanism, introduced locally in 2015 with SBP approval, has expanded nationwide over the past decade. He said clearing and transaction volumes had consistently hit record highs, supported by participation from all major Pakistani banks.
Pakistan’s Ministry of Finance has also explored sovereign RMB financing and Panda bond issuance, Zhou added. Speaking at the event, SBP Executive Director for financial markets and reserves management, Muhammad Ali Malik, said the currency’s rise reflects China’s expanding role in global trade.
He noted that the RMB’s share in global FX turnover rose to 9% in 2025, up from 1% in 2010, while its share in central bank reserves doubled to 2.2% between 2016 and 2024.
He said Pakistan is increasingly using RMB for trade settlement, with the share of imports from China invoiced in yuan rising from 5.6% in FY16 to 19.1% in FY25. He said SBP regulations give RMB equal treatment to other global currencies, including permission for exporters to retain RMB proceeds and for banks to open specialised RMB foreign accounts.
He added that RMB-denominated trade is expected to grow further as China-Pakistan trade and investment deepen, helping build a more resilient financial architecture for Pakistan.
