Pakistan eyes 'panda bonds' to integrate its capital markets with China's

Pakistan's Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday expressed the hope that Pakistan could issue yuan-denominated "panda bonds" this year to further integrate its capital markets with China's, a move underscoring China's pivotal role in the country's digital transformation.

Describing Pakistan and China as ironclad friends and strategic partners, Aurangzeb expressed gratitude for China's steadfast support.

During his recent visit to China, he toured several Chinese banks and studied their digital transformation, emphasizing that Pakistan could learn from China's experience to enhance financial inclusion through digital solutions.

Beyond financial technology, he highlighted broader bilateral cooperation in agriculture, drone technology, and other key sectors.

Aurangzeb also mentioned the China-Pakistan Economic Corridor, a flagship project of the Belt and Road Initiative. The first phase, he noted, saw extensive infrastructure development, including electricity, roads, and other support facilities. Now, as the project moves into its second phase, the focus has shifted toward commercializing infrastructure and driving investment growth.

"Going forward, the whole technical support and the knowledge economy are going to be very critical components of our relationship," he said.

As global trade faces increasing headwinds from unilateralism and protectionism, Aurangzeb praised China's unwavering commitment to openness and multilateralism, highlighting its role not just in bolstering its own economy but in driving global growth.

"(China) showing commitment to multilateralism and globalization is very encouraging for the rest of the world," he said, expressing confidence that Beijing will continue to lead global economic growth.