Federal Minister for Finance and Revenue, Muhammad Aurangzeb, said that Pakistan wanted to tap into the Chinese bond market and launch Panda bonds during FY 2025-26.
As per the statement released by the Ministry of Finance, the remarks from the finance minister – on a trip to Washington to attend the spring meetings organized by the IMF and World Bank – came during a meeting with Chinese Finance Minister, Lan Fo'an, in Washington DC.
Last month, Aurangzeb told Bloomberg that Pakistan seeks to tap Chinese investors by selling as much as $300 million in Panda bonds for the first time this year
Panda bonds are yuan-denominated instruments sold in China by offshore issuers, including companies, multilateral agencies, and governments.
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During the meeting, Aurangzeb informed his Chinese counterpart that Pakistan was entering into a larger and extended programme with the International Monetary Fund (IMF) and looked forward to the support of China.
He spoke about government priorities including broadening the tax base, fixing the energy sector, and overhauling the State-Owned Entities (SOEs).
As per the statement, Aurangzeb lauded China's invaluable contribution to Pakistan’s development as an “all-weather friend” through initiatives such as the China-Pakistan Economic Corridor (CPEC) and support at international financial institutions.
“Aurangzeb informed that Phase-I of CPEC was about infrastructure-building and Phase-II would be about monetizing assets through operationalization of Special Economic Zones (SEZ) and relocation of Chinese Private-Owned Companies (POC),” read the statement.
The finance minister expressed the resolve of the government to accelerate Phase-II.
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He thanked the Chinese government for SAFE deposits and their regular roll-overs to plug external financing gaps.
Moreover, Aurangzeb also conveyed condolences on behalf of the leadership and people of Pakistan on the terrorist attack against Chinese nationals in Pakistan and reaffirmed their commitment to their safety and security.
Last month, six persons, including five Chinese engineers, were killed in a suspected suicide attack in Besham, district Shangla of Khyber Pakhtunkhwa.
Both sides agreed on the need to continue their cooperation in international institutions, read the statement.
In a separate meeting with the World Bank’s Regional Vice President (RVP) for South Asia, Martin Raiser, Aurangzeb expressed satisfaction that the new Country Partnership Framework (CPF) would be finalized soon.
“Referring to his meeting with the Senior Leadership of the World Bank, Aurangzeb e stated that focus of the World Bank on climate change, digitalization and human development aligned with priorities of the government,” read the statement.
During the meeting, the finance minister highlighted the government's vision to realize the country's true potential in terms of economic growth and stressed the importance of timely completion of development projects and realization of intended outcomes.