Chinese investor interest indicates strong confidence in Pakistan’s economic reforms
Minister of Finance and Revenue, Senator Muhammad Aurangzeb. Photo: APP
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, while chairing a meeting at the Finance Division, reviewed the progress of the inaugural issuance of Pakistan Panda Bond under a planned $1 billion program aimed at diversifying funding sources and supporting debt sustainability.
The meeting was briefed by officials from the Finance Ministry’s Debt Management Office on regulatory approvals, investor outreach and market readiness, as Pakistan prepares to enter China’s domestic bond market with the first issuance scheduled for January.
Pakistan moves towards $1 billion Panda bond program with inaugural issuance scheduled for January
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb today chaired a meeting at the Finance Division to review the progress of Pakistan’s first Panda Bond… pic.twitter.com/5BtCRTX2R0
— Ministry of Finance, Government of Pakistan (@Financegovpk) December 19, 2025
According to the report, approvals from multilateral partners have already been obtained, 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, improved policy and reform framework, and a more positive medium-term outlook.
Read: ADB and AIIB back $250 million in Panda bonds
Final regulatory approvals from the relevant Chinese authorities are expected in early January, subject to which the inaugural issue is scheduled to be launched and concluded within a month.
The Finance Minister underlined that Pakistan’s entry into the Chinese bond market is pursued as a programmatic and structured financing strategy aligned with prudent debt management. The overall Panda bond program is planned for around $1 billion, with the first tranche planned for the equivalent of $250 million.
Officials told the meeting that preparatory work for subsequent issuances under “Panda Series II” has already begun, and Chinese regulators have been kept informed about the gradual approach. Initial communication has also been carried out with financial institutions for the second series, and proposals are expected regarding the closing of the inaugural agreement.
Read more: FinMin promises sale of PIA and Panda Bond before the end of the year
Participants noted that market conditions remain favorable, that documentation and guarantees are in place, and that collaboration with financial institutions is progressing as planned. Pricing will be determined closer to market share once all regulatory requirements are completed.
Concluding the meeting, FinMin expressed satisfaction with the pace of progress and reiterated the government’s commitment to market-based financing, saying that the issuance of the Panda Bond would strengthen Pakistan’s medium-term debt sustainability and further diversify its financing base.
Earlier, the Finance Minister had indicated that the inaugural 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-denominated issuances. Similarly, the proposed measure aims to diversify external financing sources, strengthen financial engagement with China, and take advantage of recent improvements in macroeconomic indicators and sovereign credit ratings to support economic stabilization.
