Pakistan hires adviser for upcoming Panda Bond launch

August 06, 2024 (MLN): In a significant move to re-enter the international capital market, Pakistan has hired an adviser in China to assist with the issuance of Panda Bonds, Finance Minister Muhammad Aurangzeb stated during a media briefing after the Senate Standing Committee on Finance meeting.

Previously, it was reported that the country has garnered interest from five Chinese banks to issue Panda Bonds.

Earlier this year, Finance Minister Muhammad Aurangzeb hinted regarding Panda bonds, saying he is keen to tap Chinese investors by selling as much as $300 million in Panda bonds for the first time this year.

Additionally, the Finance Minister provided further insights into other economic matters today.

He said that Pakistan is facing a financing gap of $3 to $5bn during the IMF program on which the government is taking actions to reduce it.

To cover this financing gap, Pakistan has loan offers from international commercial banks, which the government is resisting to borrow at high interest rates as interest charges are the major drain on the economic treasure.

Regarding the extended IMF program, the Finance Minister stated that he is in regular contact with the global lender and that the IMF Executive Board meeting is scheduled for the end of this month.

Additionally, the government has an adviser who will be kept in China for discussions with the CPEC partner regarding Independent Power Producers (IPPs).

On the other side, FBR digitization making significant progress and the task has been given to the Minister of State for Finance, he shared.

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