UPDATE 1-Pakistan to issue first 'Panda bond' next week, finance minister says

Pakistan is expected ​to access Chinese capital markets ‌for ​the first time through a yuan-denominated bond next week, Finance Minister Muhammad Aurangzeb said ‌on Saturday.

"God willing, next week you will hear good news that for the first time, we will be accessing Chinese capital markets ‌through Panda bond," he said at a press conference. The $250 million ‌issue, the first of a planned $1 billion programme, will be backed by the Asian Development Bank and the Asian Infrastructure Investment Bank.

Aurangzeb said Pakistan's economy ⁠was ​showing signs ⁠of recovery, including rising exports and remittances, despite the war in Iran and closure ⁠of the Strait of Hormuz placing massive strain on the country, ​which relies heavily on imported fuel and gas. The finance minister's comments ⁠follow the release of about $1.32 billion in fresh funding by the ⁠International ​Monetary Fund from two loan disbursements under two ongoing programmes. Pakistan was weighing Eurobonds from other countries and commercial debt to ⁠replace a $3.5 billion facility from the United Arab Emirates and manage ⁠its foreign ⁠reserves until Saudi Arabia provided $3 billion in additional support to bridge the multi-billion-dollar gap in its finances.

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