*Pakistan Seeks to Boost Financial Ties with China*
Pakistan's Finance Minister, Muhammad Aurangzeb, has requested an additional $1.4 billion swap line from China, on top of the existing $4.3 billion agreement. This move aims to stabilize foreign currency access and strengthen financial reserves.
*Key Developments:*
- Pakistan plans to launch its first-ever Panda bond, a debt instrument denominated in yuan, to diversify its lending base.
- Talks with the Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) are underway to secure credit enhancements for the bond issuance.
- The IMF is expected to approve a new $1.3 billion deal for Pakistan in early May, unlocking a $1 billion payout.
*Economic Outlook:*
- Pakistan aims to achieve 3% growth in the financial year ending June 2025 and targets 4-5% growth the following year.
- The country seeks to reduce reliance on traditional lenders and explore new markets.
*Global Context:*
- Tensions with India have impacted trade and economic relations, with Pakistan's airspace closed to Indian airlines and trade ties frozen.
- The US Treasury Secretary has urged the ADB to reconsider China's borrowing status, citing its growing economy.