Pakistan to Launch $250 Million Panda Bonds by Year-End
Pakistan is set to make its debut in the Yuan bond market with a $250 million panda bond launch by the end of the year, as announced by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. Speaking with Nikkei Asia at the Asian Financial Forum in Hong Kong, he emphasized the importance of tapping into the world's second-largest capital market.
The initial issuance aims to pave the way for more substantial ventures in the future. “It’s not a question of amount. What is important is that we do go for an inaugural issue and then keep it on tap,” the minister remarked.
In addition to the panda bond initiative, Pakistan is exploring corporate stock listings in Hong Kong to deepen economic ties with China. The finance minister highlighted an upcoming equity listing of Service Long March, a Pakistani-Chinese joint venture, as a significant milestone.
The minister reaffirmed Pakistan’s commitment to reforms under IMF guidelines, focusing on diversifying funding sources and enhancing economic resilience. Despite challenges, he noted progress in key economic indicators, including reduced inflation and record-breaking stock market performance.
Aurangzeb underscored the pivotal role of the China-Pakistan Economic Corridor (CPEC) in the Belt and Road Initiative. While addressing concerns about safety and project implementation, he assured stakeholders of the government's dedication to creating a secure and investment-friendly environment.