ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb briefed Governor of People’s Bank of China (PBoC) Pan Gongsheng on Pakistan’s plan to launch panda bonds during a meeting in Beijing on Friday in which they discussed a wide range of economic issues.
Panda bonds are sold in China’s domestic market and are denominated in its currency, though they are issued by non-Chinese entities. Pakistan plans to issue these bonds to diversify its funding sources and strengthen its foreign exchange reserves by attracting Chinese investors.
According to local media reports, the initial issuance is expected to raise between $250 million and $300 million, helping Pakistan improve its financial stability amid economic challenges like high inflation and declining forex reserves.
The minister spoke about the government’s economic policy during the meeting in which reprentatives of other financial institutions were also present.
“Underlining Pakistan’s plan to launch panda bonds, Minister for Finance briefed PBoC and other Financial Institutions about the steps taken so far and sought cooperation of the Chinese institutional investors in the capital market to seek benefit from the pro-business policies of the new [Pakistani] Government,” said a statement issued by the finance division after the meeting.
The Pakistani official also highlighted his country’s improving macroeconomic indicators, reforms in tax collection and energy sector and privatization of loss-making state-owned enterprises.
He applauded Chinese President Xi Jinping’s Belt and Road Initiative while reviewing the progress of its flagship China-Pakistan Economic Corridor (CPEC) project.
The minister noted the next phase of CPEC would focus on strengthening business-to-business cooperation, with private sector playing the central role in the development and economic growth.
He arrived in China on Thursday to open talks on power sector structural reforms suggested by the International Monetary Fund, two government sources quoted by Reuters.
Aurangzeb is also accompanied by Pakistan’s Power Minster Awais Ahmed Khan Leghari.
According to Reuters, both officials are expected to take up several proposals with the Chinese side, including reprofiling of nearly $15 billion energy sector debt.
Pakistan plans to launch panda bonds, seeks cooperation of Chinese capital market investors
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Pakistan plans to launch panda bonds, seeks cooperation of Chinese capital market investors
- The bonds are denominated in China’s currency and will provide Pakistan access to Chinese capital markets
- The finance minister also discusses the next CPEC stage, expected to emphasize business-to-business ties
Pakistan touts investment potential for US businesses in tech, energy and minerals
- The country’s envoy says both sides was committed to anchoring relations in economic cooperation
- He describes Pakistan’s tech-savvy youth as a competitive asset for businesses needing skilled labor
ISLAMABAD: Pakistan’s ambassador to the United States said on Sunday the country offered profitable opportunities for American businesses in information technology, energy and minerals, according to an official statement.
The comments come months after the US and Pakistan reached a trade deal in July, with officials on both sides signaling interest in expanding cooperation into energy, mining, digital infrastructure and other sectors.
Pakistani Finance Minister Muhammad Aurangzeb at the time said the aim was to move “beyond the immediate trade imperative,” adding that the two countries had “come a long way” in their broader strategic partnership.
“Pakistan presents profitable opportunities for US entrepreneurs, particularly in the fast-growing and lucrative IT, energy and minerals sectors,” Ambassador Rizwan Saeed Sheikh said, according to the statement.
Sheikh made the remarks during a meeting at the embassy in Washington with a delegation from the Yale School of Management, which plans to visit Pakistan.
He said the leadership in both countries was committed to anchoring relations in economic cooperation and providing an investor-friendly environment for American firms looking to enter a market of more than 250 million people.
The ambassador noted Pakistan was strategically located at the crossroads of South Asia, Central Asia and the Middle East, adding that it served as a vital trade corridor offering US businesses connectivity to energy-rich Central Asian states and Gulf markets.
Sheikh highlighted opportunities in tourism, agriculture, manufacturing and information technology, pointing to Pakistan’s large, tech-savvy youth population as a competitive asset for businesses needing skilled labor.
“The success of over 80 US companies already operating profitably in Pakistan bears testimony to the country’s vast economic potential,” he said.
The statement added the delegation thanked the ambassador for the briefing and said it looked forward to the embassy’s support during the visit.
