Finance Minister Muhammad Aurangzeb has said that Pakistan is considering issuing Panda Bonds to raise $200 to $250 million from Chinese investors. It should be remembered that the current system has made it necessary for the government to raise $250 million through Panda Bonds to pay the interest on Eurobonds. In an interview with the South China Morning Post, he said that Pakistan is going to issue Panda Bonds by June to further align its market with China’s capital market. He said that talks are underway with the Asian Infrastructure Investment Bank for a bank guarantee for the issuance of yuan bonds on the Egyptian model. Pakistan is committed to changing its credit rating to single B in the coming months. He said that Chinese investment is very important for Pakistan’s economic stability. Pakistan is looking for more cooperation from China in the next phase of CPEC. In the next phase of CPEC, special economic zones and agriculture and information technology sectors will be expanded, he said. That China’s private sector and export industries should invest in Pakistan, that large Chinese companies can use Pakistan as an export hub by moving their export units to Pakistan, that priority given to export industries in CPEC-2 will make debt repayment easier.
Pakistan’s Finance Minister said that due to its import-based economy, Pakistan is facing a shortage of foreign exchange and imbalance in payments. Security will be increased to protect Chinese companies in Pakistan. The security situation in Pakistan has improved. Muhammad Aurangzeb said that ensuring the safety of foreign companies and investors is the top priority of the Pakistani government. Pakistan is looking for business partnerships with China as well as Hong Kong and participation of Pakistani companies in Hong Kong stocks. Talks have been held with Hong Kong Chief Executive John Lee Kuan Yew for Hong Kong investors to visit Pakistan for business partnerships. He added that mutual partnerships will promote bilateral trade and investment. Pakistani companies and banks have traditionally listed on the London Stock Exchange outside the country. Pakistani companies and banks should take advantage of Hong Kong’s reputation to raise capital globally.