Pakistan is in the final stages of issuing a $250 million Panda bond, Finance Minister Muhammad Aurangzeb said Tuesday. The move aims to diversify funding sources and strengthen access to global capital markets. The development matters for investors and the economy as Pakistan seeks financial stability and sustainable growth.
Aurangzeb shared the update while addressing the EU-Pakistan High Level Business Forum in Islamabad. He said the inaugural Panda bond, denominated in Chinese yuan, is expected by mid-May if all goes as planned. The issuance marks Pakistan’s entry into China’s domestic bond market. It also reflects efforts to broaden external financing options.
Read more: Pakistan to launch first panda bond: Aurangzeb
Moreover, the minister highlighted the government’s Global Medium-Term Note programme to raise funds internationally. He said Pakistan plans to access Eurobonds and Sukuks over the next few years. Additionally, authorities are considering a dollar-settled, rupee-based bond to meet investor demand. This initiative aims to fill gaps in the country’s financial product offerings.
Meanwhile, State Bank Governor Jameel Ahmed expressed optimism about foreign exchange reserves. He said reserves are expected to exceed $18 billion by June. Aurangzeb noted this level would provide about three months of import cover. This benchmark is considered important for economic stability and investor confidence.
Read more: $250 million panda bonds delayed again as deadline missed
Finally, Aurangzeb stressed the importance of profit repatriation for investors and long-term growth. He acknowledged challenges in tax reforms but noted progress in increasing revenues and expanding the tax base. He added that artificial intelligence is helping reduce system leakages. These measures aim to support macroeconomic stability and improve fiscal performance.