ISLAMABAD: Finance Minister Muhammad Aurangzeb has stated that the nation was eyeing extra joint ventures with Hong Kong and secondary listings for its companies within the metropolis.
Speaking to the South China Morning Post, the finance minister stated that he would take up the potential for a Hong Kong delegation’s go to to Pakistan to determine areas for nearer collaboration.
“If there is a chance for firms out of Pakistan, as joint ventures with native firms, to come back in and do main and secondary listings within the Hong Kong inventory alternate, for example, I feel it may be an actual win-win, not solely when it comes to the funding that we count on again in Pakistan, but in addition outwards funding,” stated Aurangzeb.
The minister’s remarks got here in opposition to the backdrop of his Hong Kong go to for the two-day Asian Financial Forum, which started on Monday.
‘Panda Bonds earlier than June’
To discover additional financing alternatives, he informed the Post that Pakistan will subject Yuan-denominated Panda Bonds as early as June to additional combine its capital markets with that of China.
Aurangzeb stated Pakistan aimed to boost $200 million to $250 million from Chinese buyers within the first part.
“Since I took over [in March 2024], I’ve been very vocal about this — that we wish to go for Panda Bonds, an inaugural sovereign Panda Bond [….] I’m pushing everybody, together with our personal groups, to see if we will get this finished earlier than June,” he stated.
The minister added that Pakistan had adopted Egypt’s result in subject the yuan bonds on the again of credit score enchancment from the Beijing-led Asian Infrastructure Investment Bank (AIIB).
He stated Pakistan had endured years-long inflation and was pushed to the brink of default in 2023 as its economic system withered amid political chaos and financial mismanagement.
But the nation’s economic system rebounded final 12 months because the inflation charge dropped from practically 38% in May 2023 to 4.1% final month.
The International Monetary Fund (IMF) and Pakistan additionally reached an settlement on a 37-month prolonged bailout mortgage of about $7 billion, with a number of the nation’s predominant debt holders, together with China, agreeing to a one-year debt rollover final 12 months.
CPEC’s future
The minister additionally assured extra cooperation with Beijing on the subsequent part of the China-Pakistan Economic Corridor (CPEC) — a key initiative for reinforcing bilateral commerce and funding.
Amid what he known as the “steadiness of fee downside”, Aurangzeb stated that enhancing CPEC cooperation could be essential, including that the latest model of a flagship Belt and Road Initiative venture would assist the nation digest its debt via an export-led mannequin.
The second part of the venture, based on Pakistan, goals to arrange particular financial zones in partnership with China to reform the nation’s agricultural and knowledge know-how sectors whereas attracting Chinese firms to relocate their low-end industries to the nation.
Aurangzeb stated Pakistan was in hassle as a result of the economic system had been “primarily import-led”, which brought about the nation to “run out of international foreign money and get right into a steadiness of fee downside”.
“Which means we’ve to basically change the DNA of the economic system in direction of export-led progress,” he added.
“We wish to make it work for some firms from the mainland to come back in and use it as an actual export hub.” He additionally assured to step up safety in his nation to guard Chinese firms.
