Pakistan, Mashreq Bank explore digital finance, Panda bonds

Mettis Link News reported that Finance Minister Muhammad Aurangzeb met the senior team of Mashreq Bank to explore ways of growing the lender's presence in Pakistan. The talks were framed around digital finance, foreign investment and novel debt funding methods. Aurangzeb pointed to improved macroeconomic conditions and a return to international markets during the discussion.

Digital banking, technology-led financial inclusion and microfinance were the main focus areas, and the government reiterated its backing for the lender's growth. Offshore service operations drawing on Pakistan's skilled workforce, digital accounts and products in foreign currency aimed at overseas Pakistanis were also raised. Extending the bank's reach into GCC countries was also under consideration.

On the financing side, the parties examined Sukuk and additional Panda bond issues, along with other creative funding routes linked to the medium-term debt strategy. Emerging fintech areas, including tokenization, blockchain and digital assets, were also covered within the country's regulatory setup.