Pakistan plans to issue $300 mn in “Panda Bonds” to access the Chinese market

According to Radio Pakistan, the minister stated in a Bloomberg interview that Chinese investors can benefit from Panda bonds since China has the second-largest bond market globally.

Money

By Sneha Sengupta On Mar 23, 2024

According to official media on Friday, Pakistan’s Finance Minister Muhammad Aurangzeb announced that the nation would be releasing 300 million dollar Panda Bonds this year in an effort to enter the Chinese market.

According to Radio Pakistan, the minister stated in a Bloomberg interview that Chinese investors can benefit from Panda bonds since China has the second-largest bond market globally. The Minister stated that initially, 250 million to 300 million dollars’ worth of bonds will be issued, with the volume of Panda bonds being increased later on.

Aurangzeb expressed optimism that the Pakistani rupee will hopefully remain stable and made it clear that the payments are unlikely to put pressure on the currency.

Additionally, Pakistan will pursue an IMF program that lasts at least three years, according to the Finance Minister. According to the newspaper, he expressed confidence that the growth rate will improve in the upcoming fiscal year.

Prime Minister Shehbaz Sharif stated that the government will have to work toward a medium-term agenda while speaking to the Special Investment and Facilitation Council’s (SIFC) supreme body. “And during those years, the government will have to undertake deep-rooted structural reforms,” the prime minister stated.

The comments were made the day after the government and the IMF signed the staff-level agreement, which would have cleared the way for the payment of the $3 billion short-term loan program’s final tranche of $1.1 billion next month.