Pakistan is edging closer to issuing its first-ever Panda Bond, with authorities aiming for an initial $250 million issuance in January 2026 as part of a broader $1 billion financing programme in China’s domestic capital market.
Finance Minister Senator Muhammad Aurangzeb chaired a review meeting at the Finance Division to assess progress on the proposed bond issuance. The discussion covered key areas including regulatory approvals, investor outreach, and overall preparedness for the transaction, according to an official statement.
Officials from the Debt Management Office and senior Finance Division representatives informed the minister that necessary approvals from multilateral partners have already been secured. They also shared that engagement with Chinese institutional investors has produced encouraging results. Investor response has been described as positive, with strong interest emerging from a diverse group of potential buyers.
Authorities noted that the favorable investor sentiment reflects growing confidence in Pakistan’s improving macroeconomic conditions. Participants highlighted progress in policy implementation, ongoing reforms, and a more optimistic medium-term economic outlook as key factors supporting demand. Market conditions were also described as conducive, with stable trading environments and sustained investor appetite.
The briefing confirmed that all major documentation and guarantee arrangements have been finalized, while discussions with prospective investors are continuing as scheduled. Final regulatory clearances from relevant Chinese authorities are expected shortly, paving the way for the planned January launch of the inaugural bond.
The finance minister emphasized that Pakistan’s entry into China’s onshore bond market is part of a carefully structured and program-based borrowing strategy aligned with prudent debt management principles. The total Panda Bond programme is projected at around $1 billion, with the first tranche set at approximately $250 million.
Preparations for future issuances under a potential second phase, referred to as Panda Series II, are already underway, and Chinese regulators have been fully briefed on the multi-tranche approach. To make this development work in a smooth way, Finance Ministry launches China roadshow for first Panda Bond
Concluding the meeting, Aurangzeb expressed satisfaction with the progress made and reaffirmed the government’s commitment to responsible, market-driven financing. He said the Panda Bond would help strengthen Pakistan’s medium-term debt sustainability while diversifying its ext
