KARACHI: With an aim to generate $500 million to $1 billion worth of financing, Pakistan’s federal cabinet on Thursday agreed to float the first Panda Bonds in the Chinese market within the next three months.
“This will be the first time in the history of Pakistan that the country will enter the Chinese market,” Information Minister Fawad Chaudhry said while addressing a news conference in Islamabad after the meeting.
Talking to Arab News, Dr. Khaqan Hassan Najeeb, Spokesperson of the Ministry of Finance said: “The size, tenure, and pricing of the bonds will be determined on the basis of the market response at the time of their issuance.” He also maintained that the government was hoping to have several rounds of issuance.
Faced with financial shortages to fill an external payments gap, the government has adopted a multi-pronged approach to address its financing needs and build foreign exchange reserves, officials from the finance ministry said.
“The idea of issuing these bonds is a well thought out decision since it was taken after discussions with the Chinese banks, investment groups, and regulatory agencies,” Dr. Najeeb added.
“The bonds will also help the government diversify the investor base of the capital market issuance and provide a source for raising Renminbi,” he said, adding that the “process will start in the next two to three months”.
Pakistan expects a good response from Chinese investors, considering the interest of various Chinese banks and investment groups in the proposal. “It will be interesting to see how much our finance division manages to generate after an open bidding process, and how it determines the exact size, tenor, and price on the basis of the market response at the time of issuing these bonds,” Dr. Ikram ul Haq, an expert on economic and taxation issues, said.
At this stage, Islamabad plans to float the bonds in three phases, with a target of $500 million to $1 billion in the first year. The process is expected to continue for at least three years, targeting up to $2 billion.
Pakistan is currently negotiating with friendly countries, international donors, and lending agencies, including the International Monetary Fund (IMF), to meet its financial requirements. According to Finance Minister Asad Umar, Pakistan wants to avoid the IMF since it is likely to set tough conditions ahead of the deal.
However, experts believe that the country is trying to explore the option of Panda Bonds after it found it difficult to secure a package from the IMF, in addition to substantial support, grant, and loans from China too. It is pertinent to note that Sri Lanka, the Philippines, the UAE, Hungry, and Poland have successfully issued such bonds in the past.
“For Pakistan, it will be a temporary relief on the balance-of-payments front, though it will further increase our already unsustainable foreign debt. The funding trade deficit with China through Panda Bonds will not solve our fundamental problem of building an economy that gets rid of imports even for exports,” Dr. Haq said.
He continued that there were not too many short-term quick fixes for Pakistan anymore. “We need to go for fundamental and structural reforms and then seek support from the IMF, Asian Development Bank (ADB), and World Bank (WB),” he added.
Pakistan to float first Panda Bonds in Chinese market
Pakistan to float first Panda Bonds in Chinese market
- To launch initiative within the next three months
- Experts believe move will provide temporary economic relief to the country
Pakistan’s Mahnoor Omer named among TIME’s ‘Women of the Year’ for 2026
- Omer moved a Pakistani court against the so-called ‘period tax’ in Sept. 2025 which has since sparked a national debate
- Taxes on sanitary pads in Pakistan can add up to 40 percent to retail price, UNICEF says only around 12 percent women use such products
ISLAMABAD: Pakistani women’s rights activist Mahnoor Omer, who fought against taxes on menstrual products, has been named among the TIME magazine’s ‘Women of the Year’ for 2026.
Omer’s efforts have been recognized alongside 16 activists, artists, athletes and businesswomen in the TIME’s Women of the Year 2026 list, including Olympic gold medalist Sydney McLaughlin-Levrone and Oscar-nominated filmmaker Chloe Zhao.
Dissatisfied with the efforts to educate Pakistani girls about sexual violence, Omer founded the Noor Foundation at the age of 14 and held her own workshops with village girls about everything from climate change to menstruation, according to the TIME magazine.
Two years later, a conversation with a domestic worker about the price of pads made her realize that not everyone could afford these essentials. She moved a court against the so-called “period tax” in Sept. 2025 and the case has sparked a national debate on the subject, considered a taboo by many in Pakistan, since its first hearing late last year.
“A decade and one law degree after her interest in activism was sparked, Omer, now 25, is putting her passion and expertise to work in the name of gender equity,” TIME wrote about Omer on its website.
Taxes imposed on sanitary products in Pakistan can add up to 40 percent to the retail price. UNICEF estimates just 12 percent of women in the country use commercially produced pads or tampons. The alternative, using cloth, risks health impacts including rashes and infections, and can make it impossible for girls to attend school while menstruating.
Omer’s suit, which awaits the government response, has sparked a national discussion. She says she spoke about menstruation to her father and male cousins, who thanked her for standing up for their daughters.
The 25-year-old, who is currently enrolled in a master’s degree in gender, peace, and security at the London School of Economics, sees this case as just the first of many.
“I’m not free until every woman is free,” she was quoted as saying by TIME. “I want to leave no stones unturned in terms of what I can do with the next few decades, as a lawyer for the women in my country and gender minorities in general.”
