Islamabad (TDI): Finance Minister Muhammad Aurangzeb has said the government aims to launch Panda Bond by June to enhance the country’s presence in China’s capital markets.
“Pakistan plans to raise about $200m 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 strives to expand the tax net and increase revenue generation to fulfil the conditions set out by the International Monetary Fund as part of the $7 billion Extended Fund Facility programme approved in 2024.
“This step is part of a broader strategy to transition the country’s economy towards export-driven growth, with a focus on achieving sustainability in the balance of payments,” he said.
The minister also highlighted the critical significance of the second phase of the China-Pakistan Economic Corridor (CPEC).
Also Read: Aurangzeb, Japanese Envoy Discuss Economic Ties
He said that the second phase of CPEC would attract more Chinese firms and also open avenues for increased investments.
He invited Hong Kong businessmen and the government to explore financial and trade opportunities in Pakistan.
Aurangzeb said that Hong Kong could serve as a strategic hub for joint ventures between Pakistani and Chinese companies.
Last week, in an interview with Bloomberg Television on the margins of the Asian Financial Forum in Hong Kong, Aurangzeb stated that Pakistan is very keen to tap the Panda bonds and the Chinese capital markets.
Also Read: Pakistan Eager to Tap Yuan Bond Market: Aurangzeb
Pakistan is considering raising $200 million to $250 million from Chinese investors over the next 6 to 9 months which is slightly lower than the $300 million previously aimed by the minister who said that China International Capital Corporation was advising Islamabad on the issuance of Panda bonds.
Pakistan Witnesses Positive Economic Changes
Pakistan has witnessed some positive changes in the economic indicators like rise in foreign exchange reserves which reached a 3-year high of $18.7 billion in November last year.
With remittances hitting $3.1 billion in December, marking a 29.3 percent year-on-year increase on one hand, Pakistan’s growth forecast has also been revised to 3 percent during the fiscal year 2024-25 as opposed to the previous figure of 2.8 percent projected in September 2024 by the Asian Development Bank (ADB).
