PTI government launches yet another economic initiative to attract $1 billion
*ISLAMABAD -**PTI government launches yet another economic initiative to attract $1 billion investment.*
* In order to increase the country's financial resources, Pakistan will issue $1 billion worth of panda bonds in the first quarter of 2020.*
Habib Bank Limited (HBL) CEO Muhammad Aurangzeb informed that bonds will be issued in the Chinese market for the first time in yuan currency, quoted *The News*. China is the third largest bond market in the world, where Pakistan will issue bonds.
A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, sold in the People's Republic of China. The move comes after reflecting upon Pakistan's improved economic outlook and growing demand for the country's debt.
Reports say that the finance ministry plans to issue bonds as soon as it receives credit rating from Chinese agencies. However, this process can take a few months.
The report further added that Habib Bank Limited (HBL) is cooperating with the 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 on November 19, PM Khan said, “The Pakistani economy is finally heading in the right direction as more of our economic reforms bear fruit: Pakistan's current account turned into surplus in Oct 2019, for the first time in 4 yrs. Current account balance was +$99 mn in Oct 2019 compared to -$284 mn in Sept 2019 & -$1,280 mn in Oct 2018."
The Pakistani bond market boosting double digit interest, has become a lucrative option for international investors, have piled up $642.5 million into local-currency bonds in November only.