Bond sale transformational step, says FinMin

CPEC second phase shifts to B2B cooperation as one?quarter of bilateral trade settles in renminbi

BEIJING:

Federal Minister for Finance Muhammad Aurangzeb has said that Pakistan's inaugural Panda Bond issuance marks a transformational step in the country's financial landscape and opens a new chapter in Pakistan-China economic cooperation, according to an official statement on Saturday.

Speaking to China Global Television Network after the issuance ceremony in Beijing, the minister said the successful bond reflects growing confidence of Chinese institutions and global investors in Pakistan's macroeconomic stability and reform agenda. Aurangzeb noted that the issuance contributes to the internationalisation of the renminbi (RMB), with nearly one?quarter of bilateral trade between Pakistan and China already settled in RMB and Chinese yuan.

Discussing the broader trajectory of Pakistan-China economic cooperation, he observed that while the first phase of the China-Pakistan Economic Corridor (CPEC) largely focused on infrastructure under the Belt and Road Initiative, the second phase is increasingly centred on business?to?business collaboration, industrial cooperation and monetisation of infrastructure assets.

The finance minister said Pakistan had successfully managed the first?order implications of the regional conflict, including procurement and logistics challenges, while maintaining macroeconomic stability and keeping key indicators moving in the right direction.

He reaffirmed the government's commitment to structural reforms, fiscal discipline and investment?friendly policies, noting that ongoing reforms in taxation, energy, state?owned enterprises and digital governance are strengthening investor confidence.