Muhammad Aurangzeb said Pakistan has gained access to the world’s second-largest capital market.
Speaking in an interview with Chinese TV, he said the issuance of Panda Bonds marks a new chapter in financial cooperation between Pakistan and China, adding that Pakistan has, for the first time, gained access to China’s local capital market.
He stated that the Panda Bond issuance reflects global confidence in Pakistan’s economic credibility and will further strengthen financial ties between Pakistan and China.
The finance minister said a 7.2 billion Chinese yuan Panda Bond programme has been established.
He further stated that one-quarter of trade between Pakistan and China is now being conducted in RMB and yuan, while the Panda Bond issuance will also support the internationalisation of the RMB.
Muhammad Aurangzeb added that the focus of CPEC Phase Two is on business cooperation and investment, and that the economic priorities of Pakistan and China are fully aligned.
The federal minister also said the government remains committed to economic reforms, fiscal discipline and investment promotion, adding that reforms in taxation, energy and state-owned enterprises are boosting investor confidence.
He further said Pakistan has maintained economic stability despite the current regional situation and the Panda Bond programme will provide Pakistan access to alternative financing sources while also boosting the confidence of Chinese investors, adding that the government is pursuing various measures to promote foreign investment and ensure sustainable economic growth.
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