Senator Muhammad Aurangzeb, Minister for Finance and Revenue, and Sardar Awais Ahmad Khan Leghari, Minister for Power, held pivotal meetings with Pan Gongsheng, Governor of the People’s Bank of China (PBoC), and Ren Jingong, Vice Administrator of the National Energy Administration (NEA), in Beijing on Friday. These meetings, attended by Ambassador Khalil Hashmi and other embassy officials, were part of an official visit aimed at strengthening bilateral economic ties and discussing Pakistan’s reform agenda and cooperation with Chinese financial institutions.
The ministers provided a comprehensive briefing on the Pakistani government’s ongoing reform agenda and its engagement with the International Monetary Fund (IMF). They emphasized the significant progress Pakistan has made in enhancing its macroeconomic indicators through targeted reforms in taxation, the energy sector, and the privatization of state-owned enterprises. These reforms are crucial for achieving long-term stability and sustainable economic growth.
One of the notable achievements discussed was the reduction of inflation from 38% to 13%, marking a substantial improvement in the economy. Additionally, the stabilization of the exchange rate and the bolstering of foreign exchange reserves were highlighted as critical factors contributing to the economic upturn. The recognition of Pakistan’s policy measures by the Governor of the PBoC reflects a broader international perspective on the importance of economic resilience and prudent fiscal management.
Minister Aurangzeb discussed Pakistan’s plan to launch Panda Bonds, briefing the PBoC and other financial institutions on the steps taken so far. He sought the cooperation of Chinese institutional investors in the capital market and emphasized the pro-business policies of the new Pakistani government, which aim to attract foreign investment and stimulate economic growth.
Both ministers expressed their appreciation for President Xi Jinping’s Belt and Road Initiative (BRI) and highlighted the achievements of the first phase of the China-Pakistan Economic Corridor (CPEC), a flagship project of BRI. They noted that the next phase of CPEC would focus on strengthening business-to-business (B2B) cooperation, with the private sector playing a central role in development and economic growth.
In a meeting with Ren Jingong, Vice Administrator of the NEA, Minister Leghari reiterated the government’s commitment to introducing energy reforms aimed at enhancing the efficiency of the power sector by addressing systemic issues and reducing transmission losses. He appreciated the NEA for signing a Memorandum of Understanding (MoU) on improving governance in the power sector and expressed the government’s resolve to fast-track the implementation of the agreement.
The ministers also met with several high-ranking officials from key Chinese financial institutions, including the Executive Vice President of the China Development Bank (CDB), the President of the National Association of Financial Market Institutional Investors (NAFMII), the Chairperson of the Silk Road Fund (SRF), and the Chairman of China International Capital Corporation (CICC). These meetings aimed to strengthen financial cooperation and explore new avenues for investment in Pakistan.
On the instructions of Prime Minister Imran Khan, Senator Aurangzeb and Minister Leghari paid an official visit to Beijing from July 24-26, 2024. This visit was part of the government’s efforts to implement the consensus reached at the leadership level during Prime Minister Khan’s recent visit to China. The meetings held during this visit are expected to pave the way for deeper economic collaboration and further strengthen the bilateral ties between Pakistan and China.
