5 Chinese banks express interest in helping Pakistan sell Panda Bonds

Five Chinese banks have expressed interest in helping Pakistan sell Panda Bonds in the Chinese capital market, it has emerged.

Panda Bonds are Chinese yuan-denominated bonds issued by companies, governments, and international institutions to raise money from investors in the Chinese capital market.

Pakistan plans to sell Panda Bonds worth $250-300 million in its first such entry.

Foreign investors’ confidence in Pakistan has been revived recently after the country reached an agreement with the International Monetary Fund (IMF) for a new $7 billion loan program.

The international lender has said Pakistan’s economy is improving following its strict adherence to a previous Standby Agreement.

For the new program, the government has assured the IMF of expanding the tax base, trimming losses at state-run enterprises, privatizing loss-making units, giving social protection, and reducing subsidies.

The IMF Executive Board is expected to meet this month to approve the 37-month-long new program.