Federal Finance Minister Muhammad Aurangzeb has said that the issuance of a Panda bond is an important milestone in the financial relations between Pakistan and China, which will further strengthen the economic ties between the two countries.
In an interview given to Chinese media, he said that Pakistan has gained access to China’s local capital market for the first time. According to him, this development is very important for Pakistan because China has the second largest capital market in the world.
Muhammad Aurangzeb said that the issuance of a Panda Bond is proof of the confidence of global investors in Pakistan. He said that in recent years, the government has taken several steps for economic stability, financial discipline and reforms, which are yielding positive results.
He said that the use of Chinese currency in trade between Pakistan and China has increased significantly. According to the finance minister, about 25 per cent of bilateral trade is being done in RMB and yuan, while the Panda Bond will also play a role in increasing the importance of RMB at the international level.
The finance minister said that under CPEC Phase II, the two countries are now focusing on promoting industrial cooperation, business partnership and investment. According to him, the economic priorities of China and Pakistan are in complete harmony with each other.
He said that the government is working on tax reforms, improvement of the energy sector and restructuring of government institutions to create an investment-friendly environment. As a result of these measures, investor confidence has improved.
Muhammad Aurangzeb also emphasised that Pakistan has maintained economic stability despite the current regional tensions and global economic pressures. He said that the government’s policies aim to ensure sustainable economic growth.
According to economic experts, the issuance of Panda Bonds will help Pakistan directly access capital from China’s financial market. This move could not only improve foreign exchange reserves but also further boost international investor confidence.
Analysts say increased financial cooperation with China could be crucial to Pakistan’s long-term economic strategy.