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
https://arab.news/m6baq
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 reaffirms commitment to clamp down on informal sector to encourage investment
- Nestlé delegation briefs Finance Minister Muhammad Aurangzeb on localization, efficiency enhancements in Pakistan
- Improved compliance, transparency, strengthened tax ecosystem central to economic recovery, stresses finance minister
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb reaffirmed the government’s commitment to clamp down on the informal sector on Monday, the Finance Division said, citing transparency and a strengthened tax ecosystem as central to the country’s economic recovery.
Pakistan’s government has cracked down on smuggled items and tightened enforcement in poorly taxed sectors, such as tobacco, in recent months as it pushes ahead with its efforts to maximize tax collection by discouraging the formal sector. Informal sector comprises businesses that operate outside the tax net, avoid registration and as a result, neglect regulatory oversight and violate quality, safety or labor standards.
Aurangzeb met a delegation from Nestlé Pakistan at the Finance Division, where the two sides discussed the multinational’s efforts to strengthen its operations in the country through localization, portfolio adjustments and efficiency enhancements.
“Emphasizing the government’s resolve to clamp down on the informal sector, an effort that has already begun yielding visible results in multiple industries, the finance minister noted that improved compliance, transparency and a strengthened tax ecosystem are central to Pakistan’s economic recovery,” the Finance Division said in a statement.
Nestlé Pakistan Chief Executive Officer Jason Avancena provided an overview of the organization’s operations, claiming it had strengthened them through localization, portfolio adjustments, advanced automation, efficiency enhancements and continued innovation across product categories.
Avancena said Nestlé is implementing solar and biomass energy systems, digital dashboards, environmentally improved packaging, and supply-chain automation in Pakistan. The delegation highlighted that Nestlé’s localization efforts have materially strengthened its resilience.
“They noted that through sustained efforts to localize raw materials and reconfigure product portfolios, Nestlé Pakistan has reduced its import volumes by nearly half over the past three years from around $150 million to approximately $76–80 million, thereby minimizing exposure to foreign-exchange pressures and deepening integration with Pakistan’s agricultural and manufacturing base,” the Finance Division said.
Aurangzeb commended the multinational for its efforts and underscored the government’s intention to facilitate greater formalization and enhanced tax equity across the food and beverages sector. He noted that informal players have “rapidly expanded” their market share by operating outside the tax net in sectors such as food and beverages.
The delegation also discussed export performance, including the company’s presence in markets such as the United States, Canada, the Gulf, and the United Kingdom, sharing insights into challenges related to regional trade, particularly the Afghanistan corridor.
Aurangzeb advised Nestlé to explore logistics partnerships to expand access to Central Asian markets, reiterating that Islamabad remains committed to enabling export-oriented industry growth.
