Aurangzeb described the Panda Bond as more than a financial instrument, emphasizing its potential to diversify Pakistan’s funding sources and strengthen its financial ties with China
By our correspondent
ISLAMABAD: Pakistan is poised to make a significant foray into China’s capital markets with the issuance of a Panda Bond by June 2024, a move aimed at raising approximately $200 million from Chinese investors. Finance Minister Muhammad Aurangzeb, speaking to Hong Kong’s TVB News Channel, framed the initiative as a cornerstone of Pakistan’s broader economic strategy. This approach, he explained, is designed to foster export-led growth and ensure a sustainable balance of payments, thereby addressing the country’s persistent fiscal challenges.
Aurangzeb described the Panda Bond as more than a financial instrument, emphasizing its potential to diversify Pakistan’s funding sources and strengthen its financial ties with China. He highlighted the deepening economic partnership between the two nations, which has become a critical pillar of Pakistan’s development strategy. “The Panda Bond will help Pakistan diversify its funding sources and deepen financial engagement with China,” the minister remarked, underscoring the importance of tapping into the robust liquidity and investor base of China’s financial markets.
The issuance of the Panda Bond is part of a broader agenda that also prioritizes the second phase of the China-Pakistan Economic Corridor (CPEC). This phase, Aurangzeb noted, is set to attract more Chinese companies into Pakistan, creating an influx of investment and unlocking a wealth of new economic opportunities. He stressed that the CPEC’s expansion would catalyze industrial growth, enhance infrastructure, and provide a platform for technology transfer, aligning with Pakistan’s ambitions to modernize its economic landscape.
Addressing the strategic role of Hong Kong, the finance minister invited the region to become a key player in Pakistan’s economic revival. Aurangzeb encouraged trade delegations from Hong Kong to explore avenues for collaboration in finance and commerce, citing the city’s global significance as a financial hub. He also proposed that Hong Kong serve as a bridge for joint ventures between Chinese and Pakistani businesses, facilitating cross-border investments and partnerships that could spur mutual growth.
Aurangzeb’s remarks reflect a clear intent to deepen economic integration with China while leveraging Hong Kong’s position as a conduit for international finance. The move to issue a Panda Bond signals Pakistan’s willingness to adopt innovative financial tools and strengthen its regional ties in pursuit of long-term economic stability. As the country navigates its economic challenges, the strategic collaboration with China and Hong Kong may offer a pathway to resilience and growth.
