Pakistan hires Chinese adviser to help issue Panda Bonds

WEB DESK: In a strategic effort to re-enter the international capital market, Pakistan has hired a Chinese adviser to facilitate the issuance of Panda Bonds, Finance Minister Muhammad Aurangzeb announced following a media briefing after the Senate Standing Committee on Finance meeting.

Earlier reports indicated that five Chinese banks have expressed interest in the issuance of these bonds. Minister Aurangzeb has previously suggested plans to raise up to $300 million through Panda Bonds this year, aiming to attract Chinese investors.

In addition to discussing the Panda Bonds, Minister Aurangzeb addressed other economic issues during the briefing. He revealed that Pakistan is grappling with a financing gap between $3 billion and $5 billion amid its ongoing IMF programme. The government is actively working to address this shortfall.

According to Mettis Global, to bridge the financing gap, Pakistan has received loan offers from international commercial banks. However, the government is cautious about accepting these offers due to high-interest rates, which pose a significant burden on the country’s finances.

Regarding the IMF programme, the Finance Minister noted that he maintains regular communication with the global lender, with the IMF Executive Board meeting scheduled for the end of this month.

Furthermore, the government has appointed an adviser in China to negotiate with CPEC partners on matters concerning Independent Power Producers (IPPs).

Read next: Interbank closing: PKR sheds 5.63 paisa against USD