Shenzhen: Finance Minister Muhammad Aurangzeb said that Pakistan was keen to access Chinese capital markets, as Islamabad seeks to raise finances from international avenues.

Addressing Pak-China Business Forum being held here, he said, “During next fiscal year, we want to go in with Pakistan’s inaugural Panda bond issue to access Chinese capital market which is second largest and deepest market in world.” “At our end, we are in preparatory stages, we are going to be in touch with regulatory authorities in China because this is going to follow structure followed by government of Egypt, which is going to be guarantee-back structure in terms of inaugural Panda bond in market,” he said. Minister said that he expects policy rate to decline this year on back of significant decline in inflation rate, which has come down from peak of 38 percent to little over 11 percent in May.

“So interest rate regime in Pakistan, which has been an issue for a while, we should start seeing some relief on that front during course of this calendar year,” he said. Aurangzeb admitted, “With respect to our Chinese partners and investors there have been some temporary hiccups, in terms of delays in payments, repatriation”. “I want to assure you that these were not structural in nature, as we go forward we are there to help support, assist any way we can,” he said. He reiterated that all macro indicators of Pakistan are moving in right direction with positive trajectory. “On fiscal side, we have primary surplus, due to both fiscal consolidation and fiscal discipline.”

“On current account side, remittances have held ground and exports have moved up not only in terms of traditional sectors of textile but agriculture, on back of bumper crops, and Information Technology,” he added.