Govt to launch Panda bonds to boost foreign reserves

The Shehbaz-led federal government is considering to launch Panda Bonds in a bid to augment Pakistan’s diminishing foreign exchange reserves.

According to a media report, Prime Minister Shehbaz Sharif instructed the Ministry of Finance to assess the feasibility of issuing Panda Bonds during a “State of Economy” meeting on March 4, 2024, right after taking charge of the government. 

The premier had given a two-week deadline for the completion of this task to be expired mid next week. 

In response to the economic urgency, the prime minister also decided to conduct regular economy-focused meetings to promote stability and sustained development. 

Additionally, the premier ordered the Federal Board of Revenue (FBR) to honor top taxpayers and innovative exporters in a forthcoming ceremony.

The FBR was also tasked with enhancing its automation to reduce taxpayer interaction and ease compliance, aiming to broaden the tax base and combat corruption within its ranks.

Efforts to reduce government expenditure include reassessing the pay structure for public sector company boards, currently receiving substantial meeting fees plus allowances. 

Finance Secretary Imdadullah Bosal is to investigate the delayed implementation of scanners in factories, as previously mandated. 

The Power Division has been given a month to devise a strategy for power loss reduction, inspired by the Georgian model. Minister for Petroleum and Power Dr Musadik Malik said that he was developing a plan to increase winter electricity usage, details of which are yet to be disclosed.