Finance Minister Muhammad Aurangzeb suggested that Pakistan may be issuing Panda bonds in Yuan this year to exploit China’s extensive capital market.

Aurangzeb, who spoke in an interview with China’s CGTN under the Boao Forum for Asia, and said Pakistan was ready to engage the Chinese market for interbank bonding after previously issuing debt in Western markets.

“I’ve been a proponent, and I’m very eager that Pakistan … Go for an opening of the Panda bond,” he said. “We are very hopeful that we will do so during this calendar year.”

Panda bonds are yuan-denomined debt instruments issued by foreign units in China. They offer an opportunity to attract investments from Chinese financial institutions, including banks, asset managers and insurance companies.

Aurangzeb noted that although Pakistan had experience issuing dollar and euro bonds, this would mark its first entry into the Chinese debt market.

The move is part of a broader effort to diversify financing sources and reduce the dependence on the Western markets.

The government seeks to strengthen its currency reserves and stabilize its economy after praying after a long -term economic crisis that almost pushed the country into the sovereign standard two years ago.

In January, the finance minister said the Panda Bond question would target around $ 200 million.

His announcement comes after large credit agencies upgraded Pakistan’s sovereign ratings, which improved the country’s prospects of returning to global bond markets.

The financial manager added that Pakistan took advantage of his improved macroeconomic indicators and then to build deeper economic ties with Beijing.