April 20, 2024 (MLN): Federal Minister for Finance and Revenue, Muhammad Aurangzeb, said that Pakistan wanted to tap into the Chinese bond market and launch Panda bonds during FY 2025-26.
According to press release issued by the Ministry of Finance, the remarks from the Finance Minister came during a meeting with the Chinese Finance Minister, Lan Fo'an, on the sidelines of the IMF/World Bank Spring Meetings in Washington D.C.
To recall, last month, Aurangzeb told Bloomberg that said that the country is keen to tap Chinese investors by selling as much as $300 million in Panda bonds.
During the meeting, the Finance Minister lauded China's invaluable contribution to Pakistan's development through initiatives such as the China-Pakistan Economic Corridor (CPEC) and support at international financial institutions.
Apprising the Chinese counterpart of the progress on CPEC, Finance Minister stated that Phase-I focused on infrastructure development, while Phase-II would emphasize monetizing assets through the operationalization of Special Economic Zones and relocation of Chinese Private-Owned Companies (POCs).
He expressed the government's resolve to accelerate Phase-II of CPEC.
Finance Minister also expressed gratitude to the Chinese government for the SAFE deposits and their regular roll-overs, which have played a crucial role in addressing Pakistan's external financing gaps.
He informed the Chinese Minister that Pakistan was entering into a larger and extended program IMF and looked forward to China's continued support.
He also briefed him on the government's priorities, including broadening the tax base, fixing the energy sector, and overhauling the state-owned enterprises (SOEs).
Both sides agreed on the need to continue their cooperation within international institutions, reflecting deep-rooted economic ties between the two countries.
