Federal Finance Minister Muhammad Aurangzeb announced that Pakistan is set to launch its first Chinese Yuan-denominated bond, worth between $200 million and $250 million, this year to finance climate-related projects.
Speaking to Bloomberg during the Boao Forum in China, the minister stressed the need to diversify Pakistan’s funding sources beyond the US, Europe, and Islamic sukuks. He also mentioned that the government is working on a budget aimed at expanding the tax base by including sectors like real estate, retail, and agriculture. Additionally, he hinted at an upcoming announcement regarding a reduction in electricity tariffs.
Earlier, Aurangzeb confirmed Pakistan’s plan to issue Panda Bonds to tap into China’s deep capital markets. He noted that, after issuing bonds in US dollars and euros in the past, it is time for Pakistan to benefit from China’s financial system. The Panda Bonds, he said, will help integrate Pakistan’s capital markets with China and symbolize the strategic partnership between the two countries.
During his engagements with Chinese media, including CGTN English and China Daily, Aurangzeb thanked China for its consistent support, calling the two nations “iron brothers.” He also appreciated China’s efforts in opening up its markets and highlighted Pakistan’s aim to become a regional hub for export-oriented industries, especially from China.
He praised the infrastructure development under the CPEC project and emphasized the importance of leveraging these assets to boost trade and attract Chinese industries. Aurangzeb reiterated Pakistan’s commitment to enhancing regional trade and strengthening connectivity through improved road and rail links.
The minister also highlighted the potential for Pakistan to benefit from Chinese experiences in banking, digital transformation, financial technology, agriculture, and drone technology, particularly in promoting financial inclusion and innovation.
