By Staff Reporter
ISLAMABAD: Pakistan has received five bids from Chinese firms to help it raise funds through Panda bonds, as the country seeks to return to global capital markets after making progress in shoring up its finances, Bloomberg reported on Thursday.
The finance ministry said it had received three proposals from law firms and two from credit rating agencies by the deadline for submissions. Two Pakistani firms had also expressed interest in working as domestic legal counsels for the bond issuance.
“We are evaluating the proposals before making a final selection,” the ministry said.
Panda bonds are a type of debt security issued by foreign entities in Chinese financial markets and denominated in Chinese yuan (RMB). These bonds provide foreign issuers, including multinational corporations, international financial institutions and sovereign governments, with access to capital from Chinese investors.
Pakistan aims to raise up to $300 million through the Panda bond sale, its first in the Chinese market. The move is part of efforts to diversify funding sources and tap into Chinese investors.
The development comes after Pakistan secured a three-year, $7 billion IMF aid package, subject to approval by the Fund’s board, to support macroeconomic stability and growth.
Finance Minister Muhammad Aurangzeb emphasized the need for structural reforms to ensure the IMF program’s success.
“Reforms are crucial to making this IMF program the last,” Aurangzeb said. “We must implement structural reforms to achieve permanence and stability.”
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