Five Chinese banks have expressed interest in helping Pakistan sell Panda Bonds in the Chinese capital market, it has emerged.

Panda Bonds are Chinese yuan-denominated bonds issued by companies, governments, and international institutions to raise money from investors in the Chinese capital market.

Pakistan plans to sell Panda Bonds worth $250-300 million in its first such entry.

Foreign investors’ confidence in Pakistan has been revived recently after the country reached an agreement with the International Monetary Fund (IMF) for a new $7 billion loan program.

The international lender has said Pakistan’s economy is improving following its strict adherence to a previous Standby Agreement.

For the new program, the government has assured the IMF of expanding the tax base, trimming losses at state-run enterprises, privatizing loss-making units, giving social protection, and reducing subsidies.

The IMF Executive Board is expected to meet this month to approve the 37-month-long new program.