In an interview with Chinese TV, Pakistan Finance Minister, Mr. Muhammad Aurangzeb, held a meeting with his Chinese counterpart, Mr. Lan Fo’an, to discuss bilateral cooperation.

During the meeting, Minister Aurangzeb conveyed heartfelt condolences on behalf of the Pakistani leadership and people due to the terrorist attack.

Aurangzeb reaffirmed Pakistan’s commitment to ensure the safety and security of Chinese citizens in the country.

He stated that positive discussions are underway with financial institutions, including the International Monetary Fund (IMF), for the economic stability of Pakistan.

He emphasized that Pakistan is taking steps towards reform agendas to strengthen its economy. The repayment of Chinese loans will only be possible after the commencement of the second phase of the China-Pakistan Economic Corridor (CPEC).

He commended China for its invaluable contributions to Pakistan’s development as an “all-weather friend,” especially through initiatives such as the China-Pakistan Economic Corridor (CPEC) and support extended at international financial institutions.

Aurangzeb stated that Pakistan has been greatly affected by climate change, and China has always played a significant role in Pakistan’s development. CPEC is a remarkable and exemplary initiative by China.

The Pakistani minister highlighted that Phase I of CPEC focused on infrastructure development and Phase II would involve monetizing assets through the operationalization of Special Economic Zones and the relocation of Chinese Private-Owned Companies (POCs).

He expressed the government’s determination to expedite the progress of the second phase of CPEC.

He expressed the government’s determination to expedite Phase II and appreciated the Chinese government for their support, including the SAFE deposits and regular roll-overs to address external financing gaps.

The Finance Minister mentioned that the focus is on increasing the tax net and taking measures to reduce expenditures and lower the inflation rate.

He provided an overview of the government’s priorities, which included broadening the tax base, addressing energy sector issues, and overhauling State-Owned Enterprises (SOEs).

Furthermore, Minister Aurangzeb revealed Pakistan’s interest in tapping into the Chinese Bond Market, with plans to launch a Panda Bond during the fiscal year 2025-26.

Both sides agreed on the importance of continuing their cooperation in international institutions.

The meeting signifies the strong bond and commitment between the two countries, highlighting their shared vision for economic progress and cooperation.