Federal Finance Minister Muhammad Aurangzeb announced the launch of Pakistan’s first Panda Bond in the Chinese financial market, hoping to raise $250 million through it.
Speaking in an interview with Bloomberg, the finance minister revealed that the funds are expected to materialise within six to nine months.
The Panda Bond, a renminbi-denominated debt instrument, is part of the government's broader strategy to stabilise the economy and meet international financial obligations. "This initiative reflects our focus on sustainable economic growth and strengthening the foundation of the economy," the minister stated.
IMF delegation visit
He also announced that an International Monetary Fund (IMF) delegation will visit Pakistan next month. Minister Aurangzeb expressed optimism about meeting the conditions of the IMF bailout package, particularly the goal of increasing the tax-to-GDP ratio from 10 to 10.3%.
"The IMF wants Pakistan to broaden its tax base, and we are determined to achieve this target," he said, emphasising that reaching this benchmark would make the country’s financial situation more sustainable.
The minister also highlighted the stabilisation of Pakistan’s economy compared to the past two years. He projected an economic growth rate of 3.5% for the current fiscal year, attributing this recovery to effective fiscal policies.
International credit rating agencies have already upgraded Pakistan's economic rating, and the government is targeting a single B category in the near future. "An improved credit rating will enhance our ability to secure funds from the international bond market," he explained.
Focus on export-led growth
The minister also emphasised the need to transform the country’s economic DNA by prioritising export-led growth. "We aim to build a sustainable economy based on exports, which is essential for long-term prosperity," he said.
“This is a pivotal moment for Pakistan’s economy. We are committed to fulfilling our financial targets and building a stronger, more resilient economy,” concluded Finance Minister Muhammad Aurangzeb.
