According to FinMin, Pakistan anticipates $43 billion in remittances.

In light of strengthening macroeconomic data, Pakistan’s finance minister Muhammad Aurangzeb stated on Thursday that the government anticipates remittance inflows to reach $43 billion this fiscal year as it prepares to issue the first Panda bond.

Since avoiding a default in 2023, Pakistan has been negotiating a challenging road to economic stability under a $7 billion International Monetary Fund (IMF) agreement.

Remittance inflows to the nation rose to $38 billion in 2024 last year from $27 billion in 2023 as a result of initiatives to formalize the sector, which is worth over $400 billion, by reducing currency smuggling and expanding the tax base.

At a business summit in Peshawar, Aurangzeb stated, “We anticipate that the remittances will increase to roughly $41-43 billion in this fiscal year, and that’s a direct function of this macroeconomic stability and a stable currency rate.”

According to the minister, Islamabad has repaid $500 million of its Euro bond, and it is “well positioned” to make its next payment of $1.3 billion in April.

“We now need to return to the global capital markets, and with God’s grace, we anticipate issuing the first Panda bond before the year [2025] ends,” he stated.

Panda bonds are debt instruments denominated in Chinese yuan that are issued by foreign governments, multilateral organizations, or corporations in China’s onshore bond market. It diversifies finance sources and gives foreign debtors access to China’s enormous investor base.

“The economy is able to move forward because of all these positive outcomes of economic stability,” Aurangzeb stated.