Pakistan is set to launch yuan-denominated bonds this year to strengthen its finances, Finance Minister Muhammad Aurangzeb revealed in an interview with Bloomberg on Monday.
He expressed confidence that the government would meet the conditions of the International Monetary Fund (IMF) bailout program.
The country plans to raise up to $250 million from Chinese investors within the next six to nine months. This initiative aligns with Pakistan’s recent sovereign credit rating upgrades by all three major agencies. Aurangzeb said that further improvements in the rating were anticipated, aiming to reach the “single-B” category, which would enable Pakistan to re-enter global bond markets for additional fundraising.
“We are eager to explore Panda bonds and the Chinese capital markets,” Aurangzeb said at the Asian Financial Forum in Hong Kong. “As a nation, we have missed opportunities by not utilizing this avenue earlier.”
The current target is slightly lower than the $300 million projection Aurangzeb mentioned in a March 2024 interview. China International Capital Corporation is advising Pakistan on the issuance of the Panda bonds, he added.
