The interest of Chinese investors signals great confidence in Pakistan’s economic reforms
Finance and Excise Minister, Senator Muhammad Aurangzeb. Photo: APP
Federal Finance and Revenue Minister Senator Muhammad Aurangzeb, while chairing a Finance Department meeting, reviewed progress on Pakistan’s initial Panda bond issuance under a planned $1 billion program aimed at diversifying sources of finance and supporting debt sustainability.
The meeting was briefed by officials from the Treasury’s Debt Management Office on regulatory approvals, investor outreach and market readiness as Pakistan prepares to enter China’s onshore bond market with the first issuance targeted for January.
Pakistan Moves Towards $1 Billion Panda Bond Program With Inaugural Issue Targeting January
Union Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Finance Department today to review the progress of Pakistan’s inaugural Panda Bond… pic.twitter.com/5BtCRTX2R0
— Ministry of Finance, Government of Pakistan (@Financegovpk) 19 December 2025
According to the briefing, approvals from multilateral partners have already been secured, while engagement with Chinese institutional investors has been described as “constructive”, with strong and broad interest despite competitive market conditions. Investor feedback reflects growing confidence in Pakistan’s macroeconomic stabilization, an improved policy and reform framework, and a more positive medium-term outlook.
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Final regulatory approvals from the relevant Chinese authorities are expected in early January, subject to which the first issue is scheduled to be launched and completed within the month.
The finance minister emphasized that Pakistan’s entry into the Chinese bond market is being pursued as a structured, programmatic financing strategy aligned with prudent debt management. The total Panda Bond program is projected to be around $1 billion, with the first tranche slated for the equivalent of $250 million.
Officials told the meeting that preparatory work for subsequent issuances under the “Panda Series II” has already begun, with Chinese regulators kept informed of the phased approach. Initial approaches to financial institutions for the second series have also been carried out, with proposals expected around the conclusion of the initial agreement.
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Participants noted that market conditions remain supportive, documentation and guarantees are in place and cooperation with financial institutions is progressing as planned. Pricing will be determined closer to market exposure after all regulatory requirements are met.
Concluding the meeting, FinMin expressed satisfaction with the pace of progress and reiterated the government’s commitment to market-based financing, saying the Panda Bond issue would strengthen Pakistan’s medium-term debt sustainability and further diversify its funding base.
Earlier, FinMin had indicated that the initial Panda Bond would target around $200 million, signaling Pakistan’s intention to tap the Chinese interbank bond market for the first time after relying heavily on dollar and euro issues. Similarly, the proposed move is aimed at diversifying external funding sources, strengthening financial engagement with China and leveraging recent improvements in macroeconomic indicators and sovereign credit ratings to support economic stabilization.
