Pakistan’s Finance Minister, Muhammad Aurangzeb, has announced plans to issue Panda Bonds worth $300 million to tap into the Chinese market. This move aims to leverage China’s position as the world’s second-largest bond market and attract Chinese investors to Pakistani bonds, as reported by state media on Friday.
In an interview with Bloomberg, the minister highlighted China’s significant role in global bond markets and the potential for Chinese investors to benefit from investing in Panda bonds issued by Pakistan. Initially, bonds worth $250-300 million will be issued, with plans to increase the volume of Panda bonds in the future.
Aurangzeb emphasized the country’s strong cash balances, ensuring timely debt payments and signaling progress towards economic stability. He expressed confidence that these bond payments would not exert pressure on the currency and anticipated stability in the Pakistani rupee.
Regarding Pakistan’s engagement with the International Monetary Fund (IMF), the finance minister indicated plans for a three-year IMF program, aiming to bolster economic growth in the upcoming financial year. This aligns with Prime Minister Shehbaz Sharif’s statement on the necessity of an IMF loan for macroeconomic stability and the implementation of structural reforms over the medium term.
The recent signing of a staff-level agreement between Pakistan and the IMF marks progress towards completing a $3 billion short-term loan program initiated last year. This agreement paves the way for the disbursement of the final $1.1 billion tranche next month.
The IMF has confirmed Pakistan’s request for a 24th medium-term bailout package, signaling upcoming negotiations for a fresh loan. These developments underscore Pakistan’s efforts to address economic challenges, enhance investor confidence, and promote sustainable growth through strategic financial measures and international partnerships.
Sources By Agencies
