News Desk
- IMF delegation due next month
- Call to raise tax-to-GDP ratio from 10 to 10.3pc
- Minister highlights economic stabilisation
ISLAMABAD: Pakistan has launched its first Panda Bond in the Chinese financial market to raise $250 million.
The country’s Federal Finance Minister Muhammad Aurangzeb in an interview with the Bloomberg said the funds are expected to materialise within six to nine months.
The Panda Bond is part of the government’s strategy to stabilise the economy and meet international financial obligations, according Pakistan observer.
An International Monetary Fund (IMF) delegation is expected to visit Pakistan next month, with the aim of increasing the tax-to-GDP ratio from 10 to 10.3pc.
The minister also highlighted Pakistan’s economic stabilisation, predicting a 3.5 per cent growth rate for the current fiscal year.
“This initiative reflects our focus on sustainable economic growth and strengthening the foundation of the economy,” the minister stated.
The Panda Bond, a renminbi-denominated debt instrument, is part of the government’s broader strategy to stabilise the economy and meet international financial obligations.
This initiative reflects our focus on sustainable economic growth and strengthening the foundation of the economy.” – Finance Minister Muhammad Aurangzeb
Chinese media also reported the development stating that Pakistan wanted to transform its economy.
IMF delegation visit
The finance minister announced that an IMF delegation will visit Pakistan next month.
He seemed optimistic about meeting the conditions of the IMF bailout package
“The IMF wants Pakistan to broaden its tax base, and we are determined to achieve this target,” he said.
The minister said that reaching this benchmark would make the country’s financial situation more sustainable.
The minister also highlighted the stabilisation of Pakistan’s economy compared to the past two years.
He projected an economic growth rate of 3.5 per cent for the current fiscal year, attributing this recovery to effective fiscal policies.
“An improved credit rating will enhance our ability to secure funds from the international bond market,” he added.
Focus on export-led growth
Aurangzeb said the government aimed to transform the country’s economy.
“We aim to build a sustainable economy based on exports, which is essential for long-term prosperity,” he said.
“This is a pivotal moment for Pakistan’s economy. We are committed to fulfilling our financial targets and building a stronger, more resilient economy.”
