Pakistan is gearing up to issue panda bonds this year to strengthen its financial position, Finance Minister Muhammad Aurangzeb announced on Monday.
Key Highlights:
- What Are Panda Bonds?
Panda bonds are debt securities issued by foreign entities in Chinese capital markets, denominated in Chinese yuan. - Objective:
The government aims to raise $200 million to $250 million from Chinese investors within the next six to nine months.
Past Initiatives:
- In March 2024, Pakistan had expressed interest in issuing up to $300 million in panda bonds.
IMF Mission Update:
- The finance minister confirmed that a mission from the International Monetary Fund (IMF) is scheduled to visit Pakistan next month.
- The IMF recommended increasing the tax-to-GDP ratio from 10% to 13.5%. Aurangzeb emphasized that achieving this target is crucial for fiscal sustainability.
