ISLAMABAD (PEN) : Pakistan has received five bids from Chinese firms interested in helping the country raise funds through Panda bonds, as it advances its plans to re-enter the global capital markets and strengthen its financial position,
By the end of the proposal deadline, the government had received three offers from law firms and two from credit rating agencies. Additionally, two Pakistani firms expressed interest in serving as domestic legal advisors for the bond issuance. The finance ministry is currently reviewing these proposals before making a final decision.
This week, Fitch upgraded Pakistan’s credit rating to CCC+ from CCC, citing reduced external funding risks following the country’s recent agreement with the International Monetary Fund (IMF). Standard & Poor’s also affirmed Pakistan’s long-term foreign currency debt rating at CCC+.
In its efforts to improve financial stability, the Pakistani government has been increasing taxes and energy prices to boost revenues and plans to sell shares in state-owned entities like Pakistan International Airlines and various power distribution companies.
Encouraged by the positive feedback from rating agencies, the government is also setting its sights on future fundraising opportunities in Europe and the U.S.
“China will support the Panda bond,” Aurangzeb stated in a video message on Monday. “Eventually, we’ll need to explore euro bonds and return to the U.S. market.”
