ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan will issue Panda Bonds by June this year.
According to the report, he expressed these views during an interview with the Hong Kong Broadcasting Corporation.
Finance Minister Muhammad Aurangzeb said that the Panda Bonds are intended to participate in China’s capital markets and raise $200 million from Chinese investors.
He said that the focus is on shifting Pakistan’s economy towards export-led growth to achieve sustainability in the balance of payments.
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He stressed the importance of the new phase of CPEC and clarified that the second phase of CPEC will attract more Chinese companies and investments.
He invited Hong Kong to send delegations to review trade and financial opportunities in Pakistan and said that Hong Kong could prove to be a suitable location for joint ventures between Chinese and Pakistani companies.
The Finance Minister also confirmed that the International Monetary Fund (IMF) mission will visit Pakistan next month. He shared plans to raise the country’s tax-to-GDP ratio to 13.5% by FY25, up from 10% in December. The IMF had earlier approved a $7 billion loan program to support Pakistan’s economic reforms and stability.
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Aurangzeb expressed confidence in Pakistan’s progress, mentioning that the country is keen to tap Chinese capital markets, which had been overlooked in the past.
Global rating agencies, including Fitch and Standard & Poor’s, have also acknowledged Pakistan’s recent economic measures, with Fitch upgrading the country’s long-term foreign-currency rating to CCC+ in July. The minister emphasized that these steps are part of the government’s efforts to stabilize the economy and promote sustainable growth.
