Sudan and Pakistan in Washington: Could This Open the Door to the Return of Correspondent Banks and Improved International Transfers?
Dr Marwa Kabbani
The meeting in Washington between the Governor of the Central Bank of Sudan and her Pakistani counterpart represents an important step towards strengthening banking cooperation between the two countries, particularly in light of the challenges facing Sudan’s banking sector in external transfers and the availability of correspondent banks.
During the meeting, the two sides discussed ways to develop banking relations and facilitate payments by establishing or strengthening correspondent banking relationships. They also explored the exchange of expertise in financial technology and banking supervision, with the Pakistani side affirming its readiness to provide technical support.
From my perspective as an economic observer and analyst, such a step could positively impact Sudan’s ability to reconnect with the global SWIFT network—the principal channel for the exchange of financial messages between banks worldwide—by encouraging Pakistani banks to enter into correspondent relationships with Sudanese institutions.
Correspondent banks are a fundamental component of international transfers, as local banks rely on them to send and receive funds abroad. In recent years, Sudan has suffered from a shortage of such relationships, leading to higher transfer costs and, at times, delays in execution.
Opening direct banking channels, or reducing the number of intermediaries in the transfer chain, would help accelerate financial operations, lower fees, and facilitate trade flows between the two countries—particularly in sectors such as pharmaceuticals, food products, and industrial and agricultural inputs.
Cooperation in financial technology could also offer Sudan an opportunity to benefit from Pakistan’s experience in developing electronic payment systems, advancing digital transformation, and strengthening regulatory and compliance tools—elements that have become essential for improving banking efficiency and attracting international partners.
Despite the significance of these indicators, experts stress that achieving tangible results requires moving beyond preliminary understandings to practical implementation. This includes signing direct agreements with commercial banks, modernising banking systems, and ensuring full compliance with international anti-money laundering and counter-terrorism financing standards.
If these understandings are translated into concrete steps, Sudan–Pakistan cooperation could mark an important beginning towards restoring part of Sudan’s correspondent banking network and improving the flow of international transfers—thereby supporting trade, investment, and financial stability in Sudan.
Former banker – Institutional development consultant
Shortlink: https://sudanhorizon.com/?p=13001