BEIJING: Pakistan Finance Minister Muhammad Aurangzeb has said the country’s inaugural Panda Bond issuance marks a transformational step in Pakistan’s financial landscape and opens a new chapter in Pakistan-China economic cooperation by giving Islamabad access to China’s domestic capital market for the first time.
Speaking to China Global Television Network (CGTN) following the official Panda Bond Issuance Ceremony in Beijing, the finance minister said the successful issuance reflected the growing confidence of Chinese institutions and global investors in Pakistan’s macroeconomic stability, reform agenda and economic direction.
Aurangzeb said the Panda Bond issuance was not only significant for Pakistan’s financing strategy but also contributed toward the internationalisation of the Renminbi (RMB).
He noted that nearly one-quarter of bilateral trade between Pakistan and China is already being settled in RMB and Chinese Yuan (CNY), highlighting increasing financial integration between the two countries.
Business-to-business collaboration
Discussing broader Pakistan-China economic cooperation, the minister said the first phase of the China-Pakistan Economic Corridor (CPEC) largely focused on infrastructure development under the Belt and Road Initiative, while the second phase is increasingly centred on business-to-business collaboration, industrial cooperation and monetisation of infrastructure assets.
Aurangzeb said Pakistan had successfully managed the first-order implications of prevailing regional tensions, including procurement and logistics challenges, while maintaining macroeconomic stability and ensuring key economic indicators continued moving in the right direction.
He reaffirmed the government’s commitment to structural reforms, fiscal discipline and investment-friendly policies aimed at promoting long-term and inclusive economic growth.
According to the Ministry of Finance, the overall Panda Bond Programme is valued at $1 billion, while the inaugural issuance amounts to $250 million.
The issuance is being supported by the Asian Development Bank and the Asian Infrastructure Investment Bank.
Officials from China’s Ministry of Finance and the People’s Bank of China also attended the ceremony.
