KARACHI: Industrial and Commercial Bank of China (ICBC) , the world's biggest bank by market value, will open two branches in Pakistan this week, State Bank of Pakistan said on Tuesday.

The deal to start ICBC operations in Pakistan was reached in December during the visit of Chinese Premier Wen Jiabao, when the two sides signed deals in areas of trade, health, education, agriculture, energy and infrastructure.

"The State Bank of Pakistan (SBP) has declared ICBC as a scheduled bank with effect from Aug. 18 and initially it will operate two branches in Pakistan," said SBP chief spokesman, Syed Wasimuddin.

One of the branches will be in Karachi and another in Islamabad, he said.

"As per our rules, ICBC will start operation with an assigned capital of 3 billion rupees ($34.64 million), deposited with the central bank in dollars equivalent," said Wasimuddin.

China has long treated Pakistan as a counterweight to the influence of India and its ally, the United States, and Pakistan has in turn increasingly turned to China as a counterweight to US power.

Despite billions in aid, Pakistan still considers China a more reliable ally than the United States.

China is also a major investor in Pakistan in areas such as telecommunications, ports and infrastructure. The countries are linked by a Chinese-built road pushed through Pakistan's northern mountains.

Trade with China is worth almost $9 billion a year for Pakistan, and China is its top arms supplier.

Source:brecorder