Pakistan and India may permit three banks to setup branches on each other’s land to improve trade relations. In August 2012, both governments agree to issue licenses to two banks from each country. State bank of India and Bank of India had shown their interest in opening their branches in Pakistan. Whereas from Pakistani side, National Bank of Pakistan and United Bank Limited wanted to operate in India.
However, after that no further talks were conducted on this, the issue was again raised by Khurram Dastagir Khan, Commerce minister of Pakistan with Mr. Annad the Indian Commerce minister in Delhi.
Later on the Reserve bank of India has lifted restriction of two banks, now any bank meeting the criterion set could apply. However, for the time being three banks will be considered from each side. State Bank of Pakistan has written to Reserve Bank of India regarding the interest of three banks for operating in India.
Pakistani Commerce minister while discussing the trade ties between two countries said that due to visa problems and absence of bilateral banking relations trade is hampered. Banking relationships and communication network are two much needed things to improve trade and business activities between the two countries. image