ISLAMABAD: In a strategic effort to re-enter the international capital market, Pakistan has appointed an adviser in China to support the issuance of Panda Bonds, Finance Minister Muhammad Aurangzeb announced during a media briefing following a Senate Standing Committee on Finance meeting.
The move comes as five Chinese banks have shown interest in participating in the Panda Bond issuance. Earlier this year, Aurangzeb expressed a goal of raising up to $300 million through these bonds, aiming to attract Chinese investors for the first time.
In addition to discussing the Panda Bonds, Aurangzeb addressed other economic issues. He noted that Pakistan faces a financing gap of $3 to $5 billion during its IMF program, which the government is working to address.
To fill this gap, Pakistan has received loan offers from international commercial banks. However, the government is cautious about accepting these loans due to high interest rates, which could place a significant burden on the national economy.
Regarding the extended IMF program, Aurangzeb mentioned ongoing discussions with the global lender, with the IMF Executive Board meeting scheduled for the end of the month.
Furthermore, the government has appointed an adviser in China to engage with CPEC partners on matters related to Independent Power Producers (IPPs). Meanwhile, progress is being made on the digitization of the Federal Board of Revenue (FBR), overseen by the Minister of State for Finance.
