Finance Minister Muhammad Aurangzeb said the government intends to launch Panda Bond by June this year to strengthen the country’s presence in China’s capital markets.
“Pakistan plans to raise around $200 million from Chinese investors through the issuance of the Panda Bond,” the finance minister said in an interview with a Hong Kong news channel.
His remarks come as the government led by Prime Minister Shehbaz Sharif strives to widen the tax net and increase revenue generation to meet the conditions and targets set by the International Monetary Fund (IMF) in the part of the $7 billion Expanded Financing Facility program approved last time. year.
“This step is part of a broader strategy to shift Pakistan’s economy towards export-led growth, with emphasis on the sustainability of the country’s balance of payments,” he said. underlines.
He also highlighted the crucial importance of the second phase of the China-Pakistan Economic Corridor (CPEC).
The Finance Minister said the second phase of CPEC would attract more Chinese companies and also pave the way for increased investments.
He invited businessmen and the Hong Kong government to explore trade and financial opportunities in Pakistan.
The minister said Hong Kong could serve as a strategic hub for joint ventures between Chinese and Pakistani companies.
Last week, in an interview with Bloomberg Television on the sidelines of the Asian Financial Forum in Hong Kong, Aurangzeb said: “The country is very keen to tap Panda bonds and Chinese capital markets. press it previously.”
The country plans to raise $200 million to $250 million from Chinese investors over the next six to nine months, which is slightly lower than the $300 million previously targeted by the minister, who added that China International Capital Corporation advised Islamabad on the issuance of Panda bonds.
The country has seen positive changes in economic indicators, such as the increase in foreign exchange reserves which reached a three-year high of $18.7 billion in November 2024.
As remittances reached $3.1 billion in December, an increase of 29.3% year-on-year, the country’s growth forecast was also revised to 3% in fiscal 2024- 25, compared to the previous figure of 2.8% predicted. in September 2024 by the Asian Development Bank (ADB).
Meanwhile, the State Bank of Pakistan (SBP) has cut its policy rate by 200 basis points (bps) to 13% – the lowest in two years – and is expected to cut it further at the policy meeting scheduled this month, as reported by The News. .
Talking about improving economic indicators, Aurangzeb said the country was currently in the “stabilization phase” and should then focus on sustainable growth.