Pakistan, April 30 -- As Pakistan faces a challenging economic situation marked by persistent balance of payments pressures, rising debt obligations, and geopolitical uncertainties, the country is actively exploring new financial strategies to stabilize its economy and diversify funding sources. Two major initiatives currently underway are the expansion of its currency swap line with China and the issuance of its first Panda bonds in China's domestic bond market.

These measures, if executed prudently, could significantly enhance Pakistan's short-term liquidity, strengthen its financial autonomy, and deepen economic ties with one of its most critical partners-China. However, they also present a new set of strategic and financial risks tha...