Pakistan hires Chinese adviser to facilitate Panda Bond issuance

In a strategic effort to reintegrate into the international capital markets, Pakistan has appointed a Chinese adviser to aid in the issuance of Panda Bonds, Finance Minister Muhammad Aurangzeb announced during a press briefing following a Senate Standing Committee on Finance meeting.

The move follows reports of interest from five Chinese banks in participating in the issuance of these bonds. Finance Minister Aurangzeb had previously indicated a strong interest in attracting Chinese investors, with plans to issue up to $300 million in Panda Bonds within the year.

During the briefing, Minister Aurangzeb also addressed Pakistan’s current economic situation, revealing a financing gap of between $3 and $5 billion that needs to be addressed under the ongoing IMF programme.

The government is actively seeking to bridge this gap while avoiding high-interest loans from international commercial banks, which could place a significant burden on the country’s finances.

Regarding the extended IMF programme, Aurangzeb confirmed that he is maintaining regular communications with the global lender, with the IMF Executive Board meeting scheduled for the end of the month.