Islamabad – Federal Finance Minister Muhammad Aurangzeb has said that Pakistan has gained access to the world’s second-largest capital market, which is being termed a significant development for the country’s economy and Pakistan-China financial cooperation.
In an interview given to Chinese TV, the finance minister said that the issuance of Panda Bonds is a new chapter in financial cooperation between Pakistan and China. He said that this move has given Pakistan access to China’s local capital market for the first time, which will create more economic opportunities in the future.
Muhammad Aurangzeb said that the issuance of the Panda Bond is a clear expression of global investors’ confidence in Pakistan’s economic credibility. He said that this will not only strengthen financial ties between Pakistan and China but will also increase economic cooperation between the two countries.
According to the finance minister, the use of Chinese currencies RMB and yuan in bilateral trade between Pakistan and China is continuously increasing. He said that about a quarter of trade between the two countries is being done in RMB and yuan, while the Panda Bond will also be helpful in increasing the global acceptance of RMB.
He said that under CPEC Phase II, the focus is now not limited to infrastructure but is focused on promoting business cooperation, industrialisation and investment. According to him, the economic priorities of Pakistan and China are completely compatible with each other.
Muhammad Aurangzeb emphasised that the government is taking serious steps to promote economic reforms, financial discipline and investment. He said that reforms in the tax system, energy sector and government institutions have increased investor confidence.
The Federal Finance Minister said that despite the current regional situation and global economic challenges, Pakistan has maintained economic stability, which is a testament to the success of the government’s economic policies.
According to economists, the issuance of panda bonds could open new doors for foreign investment for Pakistan. They say that access to China’s local capital market will provide Pakistan with low-cost financing and financial diversification opportunities.
According to analysts, if the government continues the process of economic reforms, more international investors may take interest in Pakistan’s economy in the future.
