Pakistan is preparing to launch its first-ever Panda Bond in China’s capital market. The move aims to diversify external financing sources. It also seeks to strengthen long-term economic cooperation with China.
Finance Minister Senator Muhammad Aurangzeb shared the plan during an interview with China Global Television Network. He said the proposed bond reflects growing confidence in Pakistan’s economic direction. The issuance marks a new stage in bilateral financial cooperation.
The finance minister said China remains Pakistan’s largest trading partner. Bilateral trade reached nearly $17 billion during the first eight months of the year. He noted that the relationship has expanded beyond infrastructure development.
According to Aurangzeb, the China-Pakistan Economic Corridor has entered its second phase. The focus has shifted toward monetising existing infrastructure. This phase emphasizes private sector participation and business-to-business cooperation.
He said several sectors are drawing strong Chinese interest. These include agriculture, minerals and mining, artificial intelligence, and the digital economy. Cooperation now includes skills development and technology transfer.
Thousands of Pakistani agriculture graduates are studying in Chinese universities. They are learning modern farming techniques. At the same time, Chinese technology firms are training Pakistani IT graduates. These efforts aim to support digital transformation in Pakistan.
Aurangzeb said China has consistently supported Pakistan during difficult economic periods. This support also included assistance linked to Pakistan’s IMF programme. He described the partnership as reliable and long-term.
The planned Panda Bond issuance is expected before the Chinese New Year. It will allow Pakistan to access the world’s second-largest capital market. The move will also reduce reliance on dollar-based funding.
The finance minister said the bond will complement Pakistan’s existing access to eurobond and sukuk markets. It will provide greater flexibility in managing external financing needs.
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Looking ahead, Aurangzeb said recent high-level engagements produced a clear economic roadmap. This roadmap will guide future cooperation. It reinforces the strategic and economic partnership between Pakistan and China.
