The government of Pakistan is also exploring further financial collaboration with China, with Federal Minister for Finance Muhammad Aurangzeb paying a visit to Hongta Securities Chairman Jing Feng in Beijing to discuss closer ties in capital markets and increased financial connections. This is a long-term project as Pakistan capitalizes on the credit rating upgrades to entice Chinese institutional investors and, at the same time, reinforce the bilateral economic relationship under the China-Pakistan Economic Corridor model.
Finance minister wants closer capital market co-operation
According to The Express Tribune, Federal Minister for Finance Muhammad Aurangzeb met Jing Feng, Chairman of Hongta Securities, in Beijing on Monday to deliberate on ways in which capital market cooperation can be enhanced, and further financial sector connectivity between Pakistan and China. The finance minister discussed the recent economic performance of Pakistan and restated the government’s commitment towards achieving sizable and inclusive growth through structural reforms.
Aurangzeb reported the increasing confidence of international credit rating agencies in the economy of Pakistan with recent upgrades. Moody changed Pakistan’s rating to Caa2 to Caa1, and both Fitch and Standard and Poor changed their ratings to CCC+ to B- and stable, respectively. The minister emphasized that Pakistan is trying to diversify financial solutions and increase involvement with the top world and Chinese institutional investors.
These upgrades mean we are likely to experience positive changes in the fundamentals of the economy and the creditworthiness of these economies that will make Pakistan more attractive to the foreign capital markets. The positive credit ratings of Pakistan are an indication of effective adoption of economic reforms and fiscal consolidation efforts that have rebuilt market confidence.
Prime Minister strengthens commitment to strategic partnership
According to Dunya News, in a meeting with the Chinese Foreign Minister Wang Yi at the Prime Minister’s house in Islamabad, Prime Minister Shehbaz Sharif said that China has always been on the side of Pakistan in terms of its development and protection. The meeting also included Chief of the Army Staff Field Marshal General Asim Munir, Deputy Prime Minister Ishaq Dar, and senior cabinet members.
During an interview with the Chinese ministerial visitor, Shehbaz Sharif said that Pakistan would continue enhancing its strategic partnership with China. Not only did he approve of the leadership of President Xi Jinping, but he also thanked the Chinese leadership that supporting the sovereignty and the territorial integrity of Pakistan.
Comprehensive cooperation across multiple sectors
The prime minister expressed his great anticipation of a visit to Beijing and Tianjin in the coming week, during which he will attend the summit of the Shanghai Cooperation Organisation (SCO) and also celebrations of the 80th anniversary of the termination of the Second World War. He further explained that Pakistan is aiming at having more collaboration with China in areas of trade, investment, information and communication technology, agriculture, and mineral development.
China restates iron brotherhood
Pakistan was referred to as an iron brother and an all-weather strategic partner of China by the Chinese Foreign Minister Wang Yi. He said that China holds the activities undertaken by Pakistan to safeguard its sovereignty and regional integrity to be of high value and that Beijing will also maintain close collaborations with Islamabad towards regional peace, development, and stability.
Indeed, this is an economic development approach in which Pakistan has tried to build greater financial connections with China, which combines higher creditworthiness with increased bilateral cooperation in finance, trade, technology, and infrastructure. In such endeavours, Pakistan is positioned to take full advantage of Chinese investment and experience and to seek to share common interests with China in regional connectivity and economic development by institutionalized projects like CPEC.