ISLAMABAD: The federal government has decided to issue panda bonds in China’s capital market, with a capital size likely up to $30 million.
According to sources from the Finance Ministry, a Chinese credit rating agency will be hired for the bond transaction, and Expressions of Interest (EoI) have been invited from Chinese credit rating agencies for this purpose.
The rating agencies have been directed to submit their technical and financial proposals by July 29, 2024.
Additionally, the services of a law firm from the People’s Republic of China will be engaged for the bond issuance.
Applications from local legal counsel for the transaction are also being sought, with a deadline of July 15.
The relevant rating and law firms will be selected through a bidding process.
Earlier, Prime Minister Shehbaz Sharif approved the establishment of joint ventures between Chinese and Pakistani enterprises aimed at relocating Chinese industries to Pakistan.
Chairing a meeting focused on the Board of Investment (BoI), the prime minister emphasized that promoting both domestic and foreign investment is a top priority for his government.
The prime minister highlighted that the government is committed to creating a business-friendly environment for traders and investors.
To this end, he directed officials to prepare a comprehensive report on the implementation of the memorandums of understanding (MoUs) signed between Pakistani and Chinese enterprises during his recent visit to Shenzhen, China.
Additionally, he called for a review of the draft law for the Special Economic Zones (SEZ) one-stop shop, considering the new developments following his visit.
Prime Minister Sharif pointed out the significant potential for relocating China’s textile, leather, footwear, and other industries to Pakistan. This move, he noted, could provide a substantial boost to the country’s industrial sector and overall economic growth.
During the meeting, the BoI secretary briefed the attendees on the steps being taken to facilitate the relocation of Chinese industries to Pakistan.
It was informed that Chinese experts are being hired to establish a Business Facilitation Centre in Islamabad. Furthermore, the draft of the ‘Easy Business Act’ is being forwarded to the Cabinet Committee for Legislative Cases for further processing.
The meeting saw the attendance of key federal ministers, including Federal Minister for Privatization and Investment Abdul Aleem Khan, Federal Minister for Commerce Jam Kamal, Federal Minister for Finance and Revenue Muhammad Aurangzeb, and Federal Minister for Petroleum Dr. Musadik Malik. Other senior government officials and Prime Minister’s Coordinator Rana Ehsan Afzal were also present.
Prime Minister Sharif’s decision to approve these joint ventures with China marks a strategic move to attract foreign investment and stimulate economic growth.
By relocating Chinese industries to Pakistan, the government aims to leverage the expertise and resources of Chinese enterprises to enhance the local industrial landscape. This initiative is expected to create job opportunities, boost exports, and contribute to the overall economic development of Pakistan.
