ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday Pakistan planned to float Panda Bonds in China’s capital market as he met Premier Li Qiang in Beijing, where the two leaders discussed stronger economic cooperation including the next phase of the multibillion-dollar China–Pakistan Economic Corridor (CPEC).
Panda Bonds are yuan-denominated bonds issued in China by foreign governments or entities. Islamabad plans to issue them to raise financing from Chinese investors and ease pressure on its foreign exchange reserves.
At the same time, Pakistan is pushing for an upgraded phase of CPEC, a flagship project of President Xi Jinping’s Belt and Road Initiative (BRI), which has already poured billions of dollars into Pakistani infrastructure and energy. “CPEC 2.0” is meant to expand beyond roads and power plants into new areas focused on industry, agriculture, digital technology and livelihoods.
Sharif met with the Chinese premier during which he discussed Pakistan’s economic reforms, saying they were yielding promising results while acknowledging China’s support through his country’s prolonged financial hardships.
“While paying rich tribute to China’s impressive transformation under President Xi Jinping’s visionary leadership, the Prime Minister stated that Pakistan wanted to emulate China’s successes and build a stronger and closer Pakistan-China community with a shared future,” said a statement released by Sharif’s office in Islamabad after the meeting.
