Pakistan has regained access to international commercial markets after a more than two-year absence and is preparing to issue its first-ever Panda Bond by the end of the year, a move signaling strengthening macroeconomic fundamentals, according to Finance Minister Muhammad Aurangzeb.
In an interview with CGTN America, the finance minister stated that the country has consolidated its gains on the macroeconomic stability front. He highlighted that improved economic conditions enabled the government to recently secure borrowing from Middle Eastern banks, according to a report on Wednesday.
Aurangzeb observed that the nation is well-positioned to handle its upcoming financial obligations, including a substantial $1.3 billion repayment due in April of next year, following the smooth repayment of a $500 million Eurobond in September.
Confidence from international financial institutions was also underscored, with Aurangzeb noting that the second review under the IMF’s Extended Fund Facility was recently completed, resulting in a staff-level agreement. He mentioned that the Fund’s management has expressed continued confidence in Pakistan’s reform agenda, which is centered on structural adjustments.
Elaborating on the country”s economic performance, the minister pointed out that the currency is stable and foreign exchange reserves are sufficient to cover two and a half months of imports. He also noted that inflation remains in a single digit and the policy rate has been halved, prompting global rating agencies to upgrade the country”s credit outlook.
When questioned about relations with China, Aurangzeb described the friendship as “longstanding and iron clad.” He detailed that the second phase of the China-Pakistan Economic Corridor (CPEC) is focused on elevating bilateral trade and encouraging investments in areas of mutual interest, such as minerals, agriculture, AI, and IT.