- Aurangzeb praised China’s efforts to open up its economy, markets.
- Says Panda Bonds to connect Pakistan’s capital markets with China.
- Reiterates Pakistan’s commitment to strengthening regional trade.
Federal Minister for Finance Muhammad Aurangzeb said that Pakistan planned to launch its first Chinese Yuan denominated bond in the range of $200m to $250m during this colander year to fund climate related projects.
In an interview with Bloomberg on the sidelines of Boao Forum in China, the finance minister said it was important for the country to diversify its funding bases beyond the US, Europe and Islamic sukuks.
He said the government was currently putting together a budget that broadens the tax base by including sectors such as real estate, retail and agriculture. Responding to a question, the minister said that the government planned to soon make an announcement to lower electricity tariffs.
Earlier this week, the minister had said that Islamabad planned to issue Panda Bonds in Yuan this year to access China’s vast and deep capital market.
During his interview with Chinese media outlets, including CGTN English and China Daily, the finance minister said on Wednesday that Pakistan had previously issued bonds in US dollars and Euros, and now is the time to benefit from the Chinese capital market.
The issuance of Panda Bonds will connect Pakistan’s capital markets with China and reflect China’s important role in Pakistan’s digital transformation, he said and thanked China for its consistent support, referring to Pakistan and China as “iron brothers” and strategic partners.
It is pertinent to mention that the minister is visiting China, to participate in the Boao Forum for Asia Annual Conference 2025.
Aurangzeb praised China’s efforts to open up its economy and markets, highlighting the significant role of foreign companies and firms in China’s exports.
He emphasised Pakistan’s desire to become a hub for the transfer of export-oriented facilities and services from foreign, especially Chinese, companies.
The minister also commended the construction of communication infrastructure, roads, and ports in Pakistan under the CPEC project.
Aurangzeb stressed the need to promote financial benefits from the infrastructure built in Pakistan and to enable Chinese industries to benefit from this infrastructure.
He reiterated Pakistan’s commitment to strengthening regional trade and road and rail links with neighboring countries.
China’s export sector and companies can benefit from Pakistan’s existing infrastructure and low-cost labor.
Aurangzeb also studied Chinese banks and their digital transformation, emphasizing that Pakistan can learn from China’s experiences, particularly in improving financial inclusion through digital solutions.
The minister also highlighted the importance of bilateral cooperation in areas such as financial technology, agriculture, drone technology, and other key sectors.
— With additional input from APP
