*ISLAMABAD -**PTI government launches yet another economic initiative toattract $1 billion investment.*
* In order to increase the country’s financial resources, Pakistan willissue $1 billion worth of panda bonds in the first quarter of 2020.*
Habib Bank Limited (HBL) CEO Muhammad Aurangzeb informed that bonds will beissued in the Chinese market for the first time in yuan currency, quoted *TheNews*. China is the third largest bond market in the world, where Pakistanwill issue bonds.
A Panda bond is a Chinese renminbi-denominated bond from a non-Chineseissuer, sold in the People’s Republic of China. The move comes afterreflecting upon Pakistan’s improved economic outlook and growing demand forthe country’s debt.
Reports say that the finance ministry plans to issue bonds as soon as itreceives credit rating from Chinese agencies. However, this process cantake a few months.
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The report further added that Habib Bank Limited (HBL) is cooperating withthe government in the issue of bonds.
Just days ago, Prime Minister Imran Khan said that the country’s economy‘is finally heading in the right direction’. In a tweet on tweeted onNovember 19, PM Khan said, “The Pakistani economy is finally heading in theright direction as more of our economic reforms bear fruit: Pakistan’scurrent account turned into surplus in Oct 2019, for the first time in 4yrs. Current account balance was +$99 mn in Oct 2019 compared to -$284 mnin Sept 2019 & -$1,280 mn in Oct 2018.”
The Pakistani bond market boosting double digit interest, has become alucrative option for international investors, have piled up $642.5 millioninto local-currency bonds in November only.
