Pakistan’s Finance Minister Aurangzeb Seeks Stronger Ties with China and Global Partners
In Washington, DC, Pakistan’s Finance Minister Muhammad Aurangzeb met with China’s Vice Minister of Finance, Liao Min, to request an increase in the currency swap agreement to 40 billion Chinese Yuan. Aurangzeb expressed gratitude for China’s support in Pakistan’s socio-economic development and the IMF’s Extended Fund Facility.
He highlighted Pakistan’s interest in learning from China’s economic reforms and welcomed the introduction of electric vehicles by Chinese automaker BYD in Pakistan. Aurangzeb also announced plans to launch Pakistan’s first Panda bond in the Chinese market to diversify financing options.
The finance minister assured robust security for Chinese workers and noted the interest of Chinese companies in expanding investments in Pakistan. Both sides emphasized the need for online payment settlements and integration of payment systems.
Aurangzeb also met with Andrew Torre, Regional President for Visa, to commend efforts in modernizing Pakistan’s payment ecosystem, including the launch of the Financial Inclusion Card with Meezan Bank. He stressed the need for more routing options and fair competition in domestic transaction processing.
Additionally, Aurangzeb met with Mohammad Kallala from Natixis to discuss potential partnerships with Gulf investors, particularly from Saudi Arabia, to support investments in Pakistan. They agreed on the importance of ongoing engagement.
Doubts Revealed
Finance Minister -: A Finance Minister is a person in the government who is responsible for managing the country’s money, like a treasurer. In Pakistan, this person is Muhammad Aurangzeb.
Currency Swap Agreement -: A currency swap agreement is when two countries agree to exchange their money with each other. This helps them trade more easily and manage their finances better.
Yuan -: Yuan is the money used in China, just like we use Rupees in India. It’s the currency that Pakistan and China are discussing in their agreement.
IMF’s Extended Fund Facility -: The IMF, or International Monetary Fund, helps countries with their finances. The Extended Fund Facility is a program that provides financial support to countries that need help with their economy.
BYD -: BYD is a company from China that makes electric vehicles, which are cars that run on electricity instead of petrol or diesel. They are planning to introduce these cars in Pakistan.
Panda Bond -: A Panda bond is a type of bond issued in China by a foreign country or company. It’s a way for them to raise money in Chinese currency, Yuan.
Visa -: Visa is a company that helps people make payments using cards instead of cash. They are working with Pakistan to improve how people pay for things.
Natixis -: Natixis is a bank from France that helps with investments and financial services. They are discussing potential investments in Pakistan.
