Pakistan is exploring new avenues for financing by targeting the Chinese market for its inaugural Panda bond issuance. Finance Minister Muhammad Aurangzeb revealed this intention during a recent meeting with China’s Vice Minister of Finance, Liao Min, on the sidelines of the World Bank Group (WBG) and International Monetary Fund (IMF) annual meetings in Washington.
Aurangzeb also requested an increase in the limit under the existing Currency Swap Agreement to CNY 40 billion. Both sides emphasized the importance of streamlining payment systems through online settlements and integration.
The finance minister highlighted the growing interest of Chinese companies in expanding their investments and creating jobs in Pakistan. He assured the Chinese government of Pakistan’s commitment to providing robust security measures for Chinese workers.
Expressing gratitude for China’s unwavering support for Pakistan’s socio-economic development and assistance in securing the IMF’s Extended Fund Facility (EFF), Aurangzeb underscored Pakistan’s eagerness to learn from China’s economic reform experiences. He reaffirmed the strong strategic cooperative partnership between the two nations.
Additionally, the minister welcomed BYD’s decision to introduce electric vehicles to the Pakistani market.
In separate meetings, the finance minister engaged with key global players. During a meeting with Andrew Torre, Regional President for Visa, Aurangzeb appreciated Visa’s commitment to modernizing Pakistan’s payment ecosystem and supporting domestic players like 1Link. He commended Visa’s efforts in promoting financial inclusion and entrepreneurship, highlighting the successful launch of the Financial Inclusion Card in partnership with Meezan Bank.
Both parties agreed on the importance of offering diverse routing options for clients and ensuring a level playing field for domestic transaction processing.
Furthermore, Mohammad Kallala, Global Head of Corporate and Investment Banking Business at Natixis, met with the minister to discuss potential partnerships with Gulf investors, particularly from Saudi Arabia, to finance and advise on investments in Pakistan. Kallala expressed Natixis’ intention to collaborate with leading Pakistani companies to facilitate these investments.
In another meeting, Karan Bhatia, Vice President and Global Head of Government Affairs and Public Policy at Google, briefed the minister on Google’s activities and investment plans in Pakistan. Bhatia raised concerns regarding regulatory, legislative, connectivity, and financial issues, to which the finance minister assured full support.