Pakistan plans to issue its first-ever Panda bond ahead of the Chinese New Year, Finance Minister Muhammad Aurangzeb said. The bond will be Renminbi-denominated and target China’s domestic investor market. Aurangzeb called it a landmark step in Pakistan’s external financing strategy and economic diversification.
The minister explained that the Panda bond will reduce reliance on the US dollar. It complements existing access to euro and sukuk markets. Aurangzeb expressed optimism about strong investor interest from China due to the country’s large capital market. He acknowledged Pakistan had previously underutilized this financing opportunity but is now ready to engage effectively.
Read more: Pakistan to issue first Panda bonds before December: report
Aurangzeb highlighted China as Pakistan’s largest trading partner, with bilateral trade nearing $17 billion in eight months. He noted the bond aligns with Phase-II of the China-Pakistan Economic Corridor.
This new phase focuses on monetizing infrastructure, encouraging business-to-business cooperation, and boosting private-sector-led sustainable growth. The minister emphasized knowledge transfer and technical support as key benefits of this collaboration.
The finance minister also discussed Pakistan’s economic priorities, including agriculture, minerals, AI, and digital economy. He stressed that Panda bond proceeds could support these sectors.
Aurangzeb said China’s assistance has been critical during Pakistan’s IMF program and broader economic needs. He underlined the bond as a signal of strengthened Pakistan-China partnership.
Read more: Pakistan to issue first Panda bonds before December: report
Looking ahead, Aurangzeb said both countries have a clear roadmap for medium- and long-term cooperation. He added that the Panda bond will diversify funding and deepen economic ties. The issuance demonstrates Pakistan’s strategic approach to international capital markets while strengthening its bilateral relationship with China.