FinMin Aurangzeb attends Boao Forum for Asia 2025

BOAO: Finance Minister Muhammad Aurangzeb recently participated in the Boao Forum Asia (BFA) 2025 Annual Conference.

The Boao Forum for Asia is held in the Chinese city of Boao in the Hainan province. The event brings together leaders and policymakers from different sectors to discuss economic cooperation and the development in the Asia-Pacific region.

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The conference’s aim is to serve as a platform for dialogue on ‘pressing’ economic issues, and to foster cooperation among nations to improve trade, investment and development.

During the conference, Aurangzeb engaged with the Chinese media, focusing on the importance of China’s economic initiatives aimed at opening up its market.

The finance minister lauded China’s economic ‘miracle’,  as the Asian giant aims to connect with all potential markets from Africa to Europe and Asia via land (Belt and Road Initiative).

Aurangzeb talked about the critical role of the China-Pakistan Economic Corridor (CPEC) – part of the wider BRI – in improving Pakistan’s infrastructure, communications and port development, vital for the cash-strapped country’s economy.

Pakistan’s economy has faced significant challenges post-Covid 19 pandemic, with the country’s inflation shooting at an all-time high. Fiscal deficits, skyrocketing prices of basic commodities and electricity bills in lieu of IMF’s conditions for loans, has left the country financially crippled.

The finance minister stated that Pakistan was committed to building robust road and railway links in the region, considered essential for improving connectivity and facilitating trade.

One of the key points raised by Aurangzeb was the potential benefits of China’s export sector, which has thrived due to its infrastructure and competitive labour costs. He note that Pakistan could leverage these advantages to improve its own export capabilities and attract foreign investment.

He mentioned the South Asian country’s intention to issue a Panda Bond that could provide access to the Chinese capital market. This will help diversify Pakistan’s funding sources as it has previously issued bonds in dollars and euros.

The importance of tapping into the Chinese capital market was discussed in detail, with the finance minister stating that now was the opportune time to benefit from this financial avenue.

He also hinted at the possibility of issuing Pakistan’s Panda Bond in yuan within the year, which would symbolise a deeper connection between Pakistan’s capital markets and those of China.  

The PML-N member thanked China for its ongoing support, referring to the two nations as ‘Iron Brothers’.

During his visit, Aurangzeb also explored the digital transformation of the Chinese banks. He recognised the potential for Pakistan to learn from China’s experience in improving financial inclusion through digital solutions.

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He shed light on the prospects for bilateral cooperation in various sectors, including agriculture and drone technology, which could further strengthen economic ties between the two Asian neighbours.