Pakistan requests 10 billion Yuan from China

Finance Minister Muhammad Aurangzeb revealed that Pakistan has formally requested 10 billion yuan (approximately $1.4 billion) from China to strengthen its financial position.

In an interview with a foreign news agency, he expressed optimism that Pakistan would issue the Panda Bond in China's domestic bond market by the end of this year.

The minister noted significant progress in the Panda Bond issuance, with discussions held with the heads of the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) yielding positive outcomes.

Aurangzeb also shared that Pakistan has initiated a new climate financing program with the International Monetary Fund (IMF), hoping that the IMF board will approve a $1.3 billion disbursement in early May.

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Furthermore, he indicated that the first review of a new $7 billion IMF program would soon be finalized, unlocking an additional $1 billion for Pakistan.

Regarding economic prospects, the finance minister projected a growth rate of around 3% for the current fiscal year, with expectations to rise between 4% and 5% in the next fiscal year, and potentially reaching 6% thereafter.

On regional tensions, Aurangzeb cautioned that escalating hostilities with India would have adverse economic effects.

He pointed out that bilateral trade had already dwindled, with total trade between Pakistan and India amounting to just $1.2 billion last year.