Pakistani Bank’s Activity in Azerbaijan Enables to Revive Bilateral Economic Relations

Business Materials 26 August 2008 18:09 (UTC +04:00)

Azerbaijan, Baku, 26 August / Trend corr. I.Khalilova / Trade relations between Azerbaijan and Pakistan have been expanded since the functioning of the National Bank of Pakistan (NBP Bank) Baku Office in July 2005, Sohail Ahmad, the general manager of the bank, said on 25 August.

Goods turnover between countries amounted to $1,590,300 (with $1,585,900 of import) in 2004, $2,944,100 ($2,265,200) in 2005, $2,384,100 ($1,459,000) in 2006 and $3,721,200 ($2,485,200) in 2007.

According to Ahmad, lately meetings were held with the Pakistani businessmen, who are going to open their offices in Azerbaijan. It is expected to involve capital of the bank's foreign investors, as well as to conduct work on expansion of commercial relations between Azerbaijan and Pakistan under the short-term strategy of the NBP Bank Branch for 2008-2010. In medium-term prospect (2011-2013) the NBP Bank branch intends to become active subject not only in local market, but also in world financial markets.

The head of the bank believes that at present the bank has an access to the world financial market through its head office.

"To involve investors in the country, we work not only with the Pakistani Embassy in Azerbaijan, but also with the NBP Bank's branches in Kazakhstan, Turkmenistan and Kyrgyzstan," the manager of the Baku branch said.

However, in cooperation with the international financial institutes and foreign banks, the Pakistani Bank's Baku branch has not yet had plans to involve foreign borrowings, because the NBP Bank's head office support the branch.

At present, assets of the branch amount to AZN 12mln, loan portfolio - AZN 0.2mln, deposit portfolio - AZN 1.4mln. Aggregate capital of the bank was formed at AZN 10.420mln level and the aggregate capital - AZN 10mln.

The National Bank of Pakistan was established in 1949. It was established with 75% of shares of the Pakistani Government. At present, the NBP Bank has 17 foreign branches. Its assets make up $12,408mln, with $5,546mln of loan portfolio and $9,636mln of deposit portfolio and investment was realized by $3,431mln. The NBP Bank has the loan rating of AAA with stable forecast.

The exchange rate for US dollar was AZN 0.814 on 25 August.

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