Islamabad: Pakistan has made a significant change in its economic policy and has decided to obtain capital from global financial markets instead of traditional bilateral financial assistance.
According to Federal Finance Minister Muhammad Aurangzeb, under this strategy, the government is promoting commercial financing, while progress is also being made in the ongoing programme with the International Monetary Fund, and its next phase is expected in May.
He said that Pakistan will soon issue a Panda Bond of $250 million, for which guarantees have been obtained from the Asian Development Bank and the Asian Infrastructure Investment Bank, while technical matters with China are in the final stages.
The Finance Minister said that this move will help make Pakistan more credible to global investors, while future issuance of Euro and Sukuk bonds will further increase financial resources.
Regarding regional tensions, he said that despite the ongoing situation in the Middle East, there has been no immediate negative impact on Pakistan’s economy; especially, the supply of food and fertilisers has remained intact.
He also stressed that there has been no decline in remittances from overseas Pakistanis and that remittances from the United Arab Emirates remain stable.
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