The National Bank of Pakistan began international operations in Washington last week, opening an office on Connecticut Avenue NW -- the first foreign bank to commence business in the District with a limited federal branch.
Under the provisions of the license issued by the Comptroller of the Currency, the bank can carry on international financial services. A limited federal branch of a foreign bank shares many of the rights enjoyed by a national bank, but is restricted for the most part to international business transactions.
The National Bank of Pakistan will engage primarily in activities concerning international and foreign businesses. It may receive deposits from foreign governments and deal with firms and persons conducting business aboard. Deposits received in the United States from domestic companies must be obtained from transactions transmitted abroad or consist of funds collected abroad to pay for import-export operations.
"Most of our clients will be international firms and companies registered outside the United States and working here in Washington," said M. Yusouf Cholhan, senior vice president in charge of National Bank of Pakistan's Washington office.
Chohan emphasized that the new Washington branch would not offer any competition to local commercial banks but rather compete with foreign banks elsewhere in the country.
"We are not going to be competitors to Riggs or American Security banks here in Washington," he said.
The National Bank of Pakistan will be authorized to borrow from domestic offices of other banks and be able to place funds in other financial institutions here and abroad.