KARACHI – Federal government comes up with a unique initiative for theeconomic recovery of the country.

Federal government may approach panda bond market to diversify its externalfinancing sources, especially considering loan repayment obligations aheadunder $60 billion China-Pakistan Economic Corridor (CPEC) projects.

The country has an opportunity to lean towards Chinese inter-bank bondmarket, which is the third biggest after US and Japan, to ease pressure ondollar reserves.

“The government should think over it but no member of the EAC (EconomicAdvisory Council) has yet floated such an idea to the government,” a seniormember of the newly-constituted EAC said.

EAC comprising independent economists was formed to advise solutions toeconomic difficulties.

The move would be a flight from the country’s tradition sources of funding.The previous government managed to raise $6 billion through issuingconventional and shariah-compliant debt instruments in the internationalmarkets.