Economic managers mull proposal to issue yuan-denominated bonds

Pakistan’s economic managers are mulling to propose the govt. to approach panda bond market to diversify its external financing sources, especially considering the loan repayment obligations under CPEC projects. Pakistan currently has an opportunity to lean towards the Chinese inter-bank bond market, which is the third biggest after US and Japan, to ease pressure on dollar reserves. The move would be a flight from the country’s tradition sources of funding. A proposal to make CPEC-related repayments in Chinese currency is also being discussed at the ministry of finance.