Pakistan’s Finance Minister, Muhammad Aurangzeb, has announced plans to enter China’s capital markets by issuing Panda Bonds by June, with an aim to raise $200 million from Chinese investors. The announcement was made during an interview with Hong Kong’s TVB News, as reported by ARY News on Monday.
The initiative is part of Pakistan’s broader economic strategy to diversify funding sources and strengthen financial cooperation with China. Finance Minister Aurangzeb highlighted the government’s focus on transitioning the economy toward export-driven growth and achieving long-term sustainability in the balance of payments. He emphasized that the issuance of Panda Bonds marks an important step in Pakistan’s efforts to attract foreign investment and bolster foreign exchange reserves.
Aurangzeb also underscored the significance of the China-Pakistan Economic Corridor (CPEC), stating that its second phase is expected to bring in more Chinese businesses and investments. He added that Pakistan is keen on deepening its financial ties with Hong Kong and has already dispatched delegations to explore potential trade and investment opportunities in the region. Hong Kong, he noted, could act as a key facilitator for collaborative projects between Chinese and Pakistani companies.
Furthermore, the Finance Minister expressed optimism that ongoing economic reforms, in line with the International Monetary Fund (IMF) conditions, would enable Pakistan to achieve a better credit rating, targeting the “B” rating zone. He also stressed the importance of leveraging financial opportunities in Hong Kong’s stock market as part of Pakistan’s long-term economic strategy.
The issuance of Panda Bonds aligns with Pakistan’s broader vision of economic stability, diversification of funding avenues, and strengthening bilateral financial partnerships with China and Hong Kong.
