By Sumayya
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb met China’s finance leader in Bangkok this week to talk about Islamabad’s plans to sell more “panda bonds” under an approved $1 billion (7.2 billion yuan) plan, the Finance Division said.
Pakistan sold its very first panda bond worth 1.75 billion yuan ($261 million) back in May as part of this bigger 7.2 billion yuan setup, with partial safety promises from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
Aurangzeb stated earlier this week that the first bond sale would not be a one-time event and that Pakistan plans to keep returning to be a repeat seller, noting that China is the second largest money market in the world.
Aurangzeb met Lan Fo’an, China’s finance minister, during the IMF-World Bank yearly meetings in Bangkok on Thursday. Their talks focused on making financial teamwork stronger between the two countries, getting better access to global money markets, and moving regional business growth forward, the Finance Division noted.
“The talks also covered Pakistan’s return to the Eurobond market after four years and plans to sell more panda bonds under the approved 7.2 billion yuan program with ongoing help from the AIIB,” the statement added.
Aurangzeb highlighted Pakistan’s progress toward building a steady economy and thanked China for its long-time support, especially during difficult financial times.
Fo’an welcomed Pakistan’s improving economic status and its renewed entry into global money markets, the Finance Division said. Aurangzeb repeated that Pakistan aims to build a lasting place in the Chinese money market as a regular government bond seller.
Both sides also shared thoughts on a plan to set up a new Development Bank for the Shanghai Cooperation Organization to help with regional financial teamwork.
“The Chinese team asked Pakistan to take an active part in the ongoing talks and to help get everyone to agree on creating this new institution,” the Finance Division stated.
Pakistan’s step to sell panda bonds highlights its work to find different outside sources for money so it does not have to rely so much on borrowing U.S. dollars.
The South Asian country wants closer financial teamwork with China to protect its economy from global shocks and to achieve steady economic growth.
