Pakistan has sought cooperation from the Chinese institutional investors in the capital market to launch Panda Bonds.
According to a press release issued by the finance ministry here, Finance Minister Aurangzeb and Minister for Power Awais Leghari held meetings with the Governor of People’s Bank of China (PBoC) Pan Gongsheng, Vice Administrator National Energy Administration (NEA) Ren Jingong and other top finance officials and investors.
Underlining Pakistan’s plan to launch Panda Bonds, the Minister for Finance briefed PBoC and other financial institutions about the steps taken so far and asked them to benefit from the pro-business policies of the new government.
He also briefed the top Chinese officials about the incumbent government’s reform agenda and engagement with the International Monetary Fund (IMF). The discussions mainly focused on the significant strides made by Pakistan in improving its macroeconomic indicators by focusing on reforms in taxation, energy and privatisation of state-owned enterprises.
The reforms have already started showing their results, particularly, reducing inflation from 38% to 13% marks a substantial achievement for the economy, the finance minister said.
Additionally, the stabilisation of the exchange rate and the bolstering of foreign exchange reserves were highlighted as key factors contributing to the economic upturn. There was consensus that such reforms are indispensable for achieving long-term stability and fostering sustainable economic growth.
The Governor of the People’s Bank of China recognised Pakistan’s policy measures as they reflect a broader international perspective on the importance of economic resilience and the positive impact of prudent fiscal management, the statement added.
Lauding President Xi Jinping’s Belt and Road Initiative (BRI) both the Ministers noted the achievements during the first phase of the China-Pakistan Economic Corridor (CPEC), a flagship project of BRI, for strengthening the infrastructure in energy, and transport sectors along with others.
It was highlighted that during the next phase of CPEC, the focus is on strengthening B2B cooperation, with the private sector playing a central role in the development and economic growth.
Meanwhile, in a meeting with Vice Administrator NEA, the Minister for Power expressed the government’s conviction to introduce energy reforms aimed at enhancing the efficiency of the power sector by addressing systemic issues and cutting transmission losses. He appreciated NEA for signing the MoU on improving governance of the Power Sector and expressed resolve to fast-track implementation of the agreement.
The ministers also met the Executive Vice President of China Development Bank (CDB), the President of the National Association of Financial Market Institutional Investors (NAFMII), the Chairperson of Silk Road Fund (SRF), the Chairman of China International Capital Corporation (CICC).
On the instructions of the Prime Minister, the two ministers paid an official visit to Beijing from 24-26 July 2024 as part of the government’s efforts to implement the consensus reached at the leadership level during the former’s recent visit to China.
