Finance Minister Muhammad Aurangzeb announced that Pakistan plans to issue Panda bonds by June 2025 to pay off external debts and enhance the country’s credit rating.
In an interview with the South China Morning Post, Aurangzeb underscored the critical role of Chinese investment in stabilizing Pakistan’s economy. “We aim to collect $200–250 million from Chinese investors through issuing Panda Bonds. We are currently discussing guarantees with the Asian Infrastructure Investment Bank (AIIB),” he stated.
Pakistan plans to launch yuan-denominated panda bonds worth $200-250 million this year to strengthen its finances, while also focusing on sustainable growth and tax reforms ahead of an upcoming IMF mission. https://t.co/2HKyIamcJr pic.twitter.com/ioBEmvqvVj
— Investify Pakistan (@investifypk) January 13, 2025Aurangzeb expressed the government’s commitment to improving Pakistan’s credit rating to a single B within the upcoming months, reflecting confidence in the country’s economic management.
The minister also highlighted the desire to deepen collaboration with China in the next phase of the China-Pakistan Economic Corridor (CPEC). He called on Chinese private enterprises and export industries to consider investments in Pakistan, positioning it as a potential export hub for major Chinese corporations.
Aurangzeb assured the government would implement measures to enhance the security of Chinese companies operating in Pakistan. “The investment and partnership with China are pivotal for Pakistan’s economic growth and stability, especially as we navigate challenging times,” he concluded.
