Pakistan, Hong Kong emphasize further cementing economic, diplomatic ties
Staff Report ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb and the Chief Executive of Hong Kong Special Administrative Region (SAR), John K C Lee on Tuesday emphasized the importance of strengthening economic and diplomatic relations between two countries. Aurangzeb during a call on meeting with Lee highlighted the potential for increased cooperation in various sectors, including finance, technology, and tourism. He underlined the shared values and interests that bind the two regions and expressed Pakistan’s commitment to deepening these ties further. Aurangzeb and Chief Executive Lee engaged in constructive dialogue on a range of topics, including economic collaboration, trade relations, investment opportunities, and cultural exchanges between the two regions. The discussion aimed to foster closer ties and explore avenues for mutual growth and prosperity, the statement added. On the occasion, K C Lee welcomed Aurangzeb’s visit and echoed the sentiment of enhancing collaboration between Pakistan and Hong Kong. He acknowledged the significance of fostering strong partnerships to drive economic development, innovation, and cultural exchange, emphasizing the mutual benefits of such cooperation. Meanwhile, Pakistan will issue Yuan-denominated Panda Bonds” as early as June to further integrate its capital markets with that of China, Aurangzeb said. In an interview with South China Morning Post (SCMP), the minister also assured more cooperation with Beijing on the next phase of the China–Pakistan Economic Corridor (CPEC)–a key initiative for boosting bilateral trade and investment. He also called for more participation from China’s private sector and export-led industries to transform Pakistan’s debt-laden economy. Aurangzeb said Pakistan aimed to raise US$200 million to US$250 million from Chinese investors. The minister is in Hong Kong for the two-day Asian Financial Forum, which began on Monday. “Since I took over [in March 2024], I have been very vocal about this – that we want to go for panda bonds, an inaugural sovereign panda bond … I’m pushing everyone, including our own teams, to see if we can get this done before June,” the paper quoted as having said. The minister added that Pakistan had followed Egypt’s lead to issue the yuan bonds on the back of credit improvement from the Beijing-led Asian Infrastructure Investment Bank (AIIB). He said, Pakistan had endured years-long inflation and was pushed to the brink of default in 2023 as its economy withered amid political chaos and economic mismanagement. But the country’s economy rebounded last year as the inflation rate dropped from nearly 38 per cent in May 2023 to 4.1 per cent last month. The International Monetary Fund (IMF) and Pakistan also reached an agreement on a 37-month extended bailout loan of about US$7 billion, with some of the country’s main debt holders, including China, agreeing to a one-year debt rollover last year. Amid what he called the “balance of payment problem”, Aurangzeb said that enhancing CPEC cooperation would be crucial, adding that the newest version of a flagship Belt and Road Initiative project would help the country digest its debt through an export-led model.