Monday, January 13, 2025
-Advertisement-

Pakistan to Introduce Yuan Bonds this Year

- Advertisement -

Pakistan is set to introduce yuan-denominated Panda bonds this year to strengthen its financial position, Finance Minister Mohammad Aurangzeb announced. The government plans to raise $200 million to $250 million from Chinese investors within six to nine months.

Speaking at the Asian Financial Forum in Hong Kong, Aurangzeb highlighted the country’s optimism about meeting the International Monetary Fund’s (IMF) $7 billion bailout conditions. “We are very keen to tap the Panda bonds and Chinese capital markets,” he noted, describing past inaction in this area as a missed opportunity.

- Advertisement -

The latest bond issuance target is slightly lower than the $300 million previously projected in March 2024. China International Capital Corporation is advising Pakistan on this venture.

Aurangzeb also pointed to Pakistan’s improved economic outlook, with all three credit agencies recently upgrading its sovereign rating. He aims to move Pakistan into the “single-B” rating category, enabling access to global bond markets.

The IMF, scheduled to visit next month, has urged Pakistan to expand its tax base and raise the tax-to-GDP ratio to 13.5% from December’s 10%. Aurangzeb expressed confidence in achieving this target, saying, “This is necessary not just for IMF compliance but for sustainable fiscal health.”

Since securing the IMF bailout last year, Pakistan has benefited from cooling inflation and reduced borrowing costs. Strong remittances have bolstered currency reserves, helping the rupee appreciate by 2% in 2024, making it one of the best-performing currencies in emerging markets. Additionally, the benchmark stock index outperformed most global equities markets last year.

- Advertisement -

Stay updated with the latest and breaking news directly on your mobile phone by joining Headline PK's WhatsApp group!

 

 

Latest stories

-Advertisement-

Highlights of the Week
Related

Govt Announces Revised RLNG Prices for January

The government has announced revised rates for regasified liquefied...

Majority of Pakistanis Outside Tax Net: Chairman FBR

Chairman of the Federal Board of Revenue (FBR), Rashid...

The Role of International Exhibitions in Pakistan’s Textile Exports

The largest global exhibition for home textiles, Heimtextil 2025,...

Asad replaces Salahuddin as CEO KW&SC

Karachi Water and Sewerage Corporation (KW&SC) has appointed Asad...
-Advertisement-
Join our Whatsapp Group for Exclusive News!
Join our Whatsapp Group for Exclusive News!