ISLAMABAD (Commerce Desk): Chinese Finance Minister Lan Fo’an has welcomed improvements in Pakistan’s economic situation and its progress toward stability, emphasizing the need to further strengthen financial cooperation between the two countries.
Federal Minister for Finance and Revenue Muhammad Aurangzeb met his Chinese counterpart, Lan Fo’an, in Bangkok on the sidelines of the annual meetings of the World Bank Group and the International Monetary Fund (IMF).
According to a statement issued after the meeting, Muhammad Aurangzeb expressed gratitude for China’s continued support during Pakistan’s challenging economic circumstances. The Chinese finance minister welcomed Pakistan’s improving economic conditions and its renewed access to international financial markets.
The two leaders discussed expanding bilateral financial cooperation, improving access to international capital markets and promoting regional economic partnerships. They also reviewed the successful issuance of Pakistan’s first Panda bond, highlighting regulatory support, assistance from the Asian Infrastructure Investment Bank (AIIB) in enhancing creditworthiness, a competitive yield of 2.5 percent and strong investor interest as key contributing factors.
According to the statement, Pakistan reaffirmed its commitment to maintaining a sustained presence in China’s capital market as a sovereign bond issuer. The meeting also covered Pakistan’s return to the Eurobond market after a four-year gap and plans to issue additional Panda bonds under an approved programme worth 7.2 billion Chinese yuan. The possibility of continued support from the AIIB was also discussed.
Both finance ministers discussed Pakistan’s chairmanship of the Shanghai Cooperation Organisation (SCO), preparations for the upcoming summit and the planned SCO finance ministers’ meeting in Islamabad. Chinese Finance Minister Lan Fo’an expressed his desire to attend the meeting.
The proposed establishment of an SCO Development Bank was also discussed. The Chinese delegation requested Pakistan’s active participation in consultations and assistance in building consensus on the initiative, while Pakistan reaffirmed its commitment to advancing the proposal.
According to the statement, the two sides also reviewed progress in building consensus on proposed changes to the route of a China-Pakistan highway project.
Muhammad Aurangzeb briefed his Chinese counterpart on Pakistan’s collaboration with Alibaba to promote digital transformation and training in artificial intelligence-related skills. Both sides reaffirmed the government’s commitment to implementing the agreed framework and further strengthening cooperation in digital technology and artificial intelligence.