Federal Finance Minister Senator Aurangzeb has said that the issuance of Panda Bond is the beginning of a new era of financial cooperation between Pakistan and China. The issuance of Pakistan’s first Panda Bond has ushered in a new era of financial cooperation between Pakistan and China.
Through this development, Pakistan has gained access to China’s local capital market for the first time, which is considered the second largest and deepest capital market in the world.
In an interview with China Global Television Network (CGTN), the Finance Minister said that the successful issuance of Panda Bond is evidence that Chinese financial institutions and global investors are growing in confidence in Pakistan’s economic direction, reform agenda and macroeconomic stability, according to the Ministry of Finance.
Senator Muhammad Aurangzeb said that the Panda Bond is not only important for Pakistan’s fiscal strategy but will also promote the international use of the Chinese currency RMB (RMB).
He said that almost a quarter of trade between Pakistan and China is already being done in RMB and Chinese Yuan, reflecting the growing financial and economic ties between the two countries.
He said that the first phase of the China-Pakistan Economic Corridor (CPEC) focused on building infrastructure, while the second phase is focusing on business cooperation, industrial partnerships and reaping economic benefits from infrastructure.
The Finance Minister said that the priorities of Pakistan and China are aligned with each other in terms of mutual trade, investment, regional connectivity and sustainable economic growth. The Finance Minister said that despite the current regional situation, Pakistan has effectively handled the initial challenges related to procurement, delivery and logistics and maintained economic stability.
He said that key economic indicators are moving in the right direction. Senator Muhammad Aurangzeb, while reiterating the government’s commitment to reform programs, fiscal discipline and investment-friendly policies, said that ongoing reforms in the tax system, energy, public institutions and digital governance are increasing investor confidence and further improving Pakistan’s economic situation.
The Finance Minister was speaking to CGTN after the launch of Pakistan’s first Panda Bond in Beijing. This historic launch provides Pakistan with access to China’s domestic capital market for the first time and is being described as a major milestone in Pakistan’s economic diplomacy and financial diversification.
The total size of the Panda Bond program is US$1 billion, while the initial issuance is equivalent to US$250 million. The issuance is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
Representatives from the Chinese Ministry of Finance and the People’s Bank of China also attended the event.
The Finance Minister thanked the Chinese government, financial institutions, regulatory authorities, and international development partners for their support in the Panda Bond issuance and expressed hope that this development will pave the way for further financial cooperation and new issuances in the future.