Business Recorder
Finance Minister Muhammad Aurangzeb on Friday termed the successful issuance of Pakistan’s first-ever Panda Bond as a historic milestone in the country’s economic and financial engagement with China and the international capital markets. Addressing the ceremony in Beijing, which marked Pakistan’s inaugural Panda Bond issuance, Aurangzeb stated: “We celebrate a real landmark for Pakistan, the successful debut issuance of Pakistan’s Panda Bond in China.” Pakistan completed its inaugural Panda Bond issuance in China’s onshore capital market on Thursday, marking the country’s first-ever entry into the world’s second-largest and deepest capital market. The finance minister said that the achievement marks “a beginning of a new chapter in Pakistan’s economic and financial engagement with China, in the context of international capital markets”. The Panda Bond issuance reflects the growing maturity of our economic cooperation and the confidence of Chinese institutions and investors in Pakistan, he added. He shared that Pakistan has become the first Panda Bond issuer from South Asia. Aurangzeb informed participants that Pakistan had successfully established a CNY 7.2 billion Panda Bond Programme after two years of extensive preparation and coordination with Chinese regulators, development partners, advisors, and market participants. “Our goal was to establish Pakistan’s long-term presence in the Chinese capital market and to create a sustainable platform for future sovereign issues,” he said. He noted that the debut issuance of CNY 1.75 billion received an overwhelmingly positive response and was oversubscribed, reflecting strong investor confidence in Pakistan’s economic outlook and reform agenda. The finance minister appreciated the leadership and support provided by China International Capital Corporation (CICC) as lead underwriter, alongside Bank of China, Standard Chartered Bank, and Hongta Securities as joint lead underwriters, as well as HBL as financial advisor. He also expressed gratitude to the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) for their credit-enhancement guarantees, which helped facilitate Pakistan’s successful entry into the Chinese onshore bond market. Highlighting the sustainable dimension of the issuance, Aurangzeb stated that this was Pakistan’s first Sustainable Panda Bond, with proceeds earmarked for projects in the water, energy, and health sector underscoring the Government’s commitment to inclusive and sustainable growth. Speaking on Pakistan’s economic progress, Aurangzeb said that the country’s economy was experiencing renewed stability, disciplined reforms, and forward-looking transformation. He highlighted improvements in macroeconomic indicators, including stronger GDP growth, sharply reduced inflation, improved foreign exchange reserves, fiscal consolidation, and a stabilised external sector supported by resilient exports and robust remittance inflows. The finance minister further noted that the government was advancing tax reforms through digitalisation and expansion of the tax base, implementing energy sector reforms to address circular debt and improve efficiency, and pursuing state-owned enterprise reforms through restructuring and privatisation initiatives. He added that Pakistan’s investment climate was improving through regulatory simplification, digital governance, and targeted sectoral reforms. He reaffirmed Pakistan’s strong commitment to the IMF programme, stating that adherence to the reform agenda had strengthened macroeconomic foundations and reinforced market confidence in the country’s economy. The finance minister appreciated the role of the Government of the People’s Republic of China, particularly the Ministry of Finance of China, the People’s Bank of China, and NAFMII, for their invaluable support and facilitation throughout the process. He also acknowledged the contribution of CCXI, Fangda Partners, A&Q, the Ministry of Finance team, and the Embassy of Pakistan in Beijing. Aurangzeb stated that the successful issuance marked not the end, but the beginning of a long-term partnership between Pakistan and the Chinese capital market.
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