Panda bond opens new phase of financial ties with China: finance minister

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Saturday described the issuance of the country’s panda bond as a “major milestone” in financial cooperation with China, saying it marks the beginning of a new phase in bilateral economic ties.

In an interview with China Global Television Network (CGTN), Aurangzeb said that the panda bond gives Pakistan access to the world’s second-largest capital market for the first time.

He said that the successful issuance reflected international confidence in Pakistan’s economic direction and reform agenda.

“The panda bond issuance is a key milestone and the beginning of a new era of financial cooperation between Pakistan and China,” Aurangzeb said.

He said nearly one-quarter of trade between Pakistan and China is already being conducted in Chinese yuan and renminbi, underscoring deepening financial integration between the two countries.

Aurangzeb said the second phase of the China-Pakistan Economic Corridor (CPEC) focuses on business cooperation, industrial partnerships and broader economic benefits.

He added that Pakistan and China’s priorities were aligned in areas of trade expansion, investment and sustainable economic growth.

Despite economic challenges, key macroeconomic indicators were moving in the right direction and stability had been maintained, he said.

The finance minister said that ongoing reforms in taxation, energy and digital governance were helping improve investor confidence and strengthen economic fundamentals.