Pakistan to issue panda bonds, explore Hong Kong business ties: Finance Minister

Pakistan to issue panda bonds and explore joint ventures, secondary listings in Hong Kong for investment.

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Pakistan's Finance Minister, Muhammad Aurangzeb, has revealed plans for the country to issue yuan-denominated panda bonds in June, aiming to raise between $200-$250 million from Chinese investors.

This move is part of Pakistan's broader strategy to diversify its funding base and strengthen its capital market integration with China.

In an exclusive interview with South China Morning Post, Aurangzeb emphasised the critical importance of this initiative for the country’s financial stability.

He also reiterated Pakistan's commitment to furthering cooperation with China on the next phase of the China-Pakistan Economic Corridor (CPEC).

The minister is also looking to enhance business relations with Hong Kong. Ahead of his meeting with Hong Kong Chief Executive John Lee Ka-chiu, Aurangzeb shared plans to explore opportunities for Pakistani companies to establish joint ventures and secondary listings on the Hong Kong Stock Exchange (HKEX). He believes this will help attract both inward investment into Pakistan and facilitate outward investments.

The finance minister’s visit coincides with the two-day Asian Financial Forum in Hong Kong, where he will discuss further avenues for collaboration, including the possibility of a Hong Kong delegation visiting Pakistan to explore new business areas.

Historically, Pakistani companies have preferred secondary listings on the London Stock Exchange, but Aurangzeb emphasised that Hong Kong's reputation for international capital raising offers significant untapped potential for Pakistani businesses.