Pakistan says ‘very hopeful’ of launching inaugural panda bond this year

Pakistan Finance Minister Muhammad Aurangzeb speaks during a press briefing in Islamabad on July 28, 2024. (APP/File)
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Updated 27 August 2025
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Pakistan says ‘very hopeful’ of launching inaugural panda bond this year

  • Finance minister to visit China next week with PM, hopes to finalize yuan-denominated debt sale
  • Move seen as Pakistan’s return to global capital markets after prolonged economic crisis

ISLAMABAD: Pakistan is still “very hopeful” of launching its first panda bond in 2025, Finance Minister Muhammad Aurangzeb said on Wednesday, as the South Asian country seeks to return to international capital markets and raise funds from Chinese investors.

A panda bond is a Chinese yuan-denominated debt instrument issued in China’s onshore bond market by foreign governments, multilateral institutions or companies. It allows overseas borrowers to access China’s vast pool of investors while diversifying funding sources.

“Next week, along with the prime minister, I will be in China and we will again bring up the discussion of where we want to go in terms of the international capital markets, starting with the panda bond,” Aurangzeb said at an event in Islamabad. “And we are very hopeful that before the year is out, we can do the inaugural issue.”

Aurangzeb had previously told a Hong Kong news channel that Islamabad intended to launch the bond in June, but the plan was delayed pending regulatory approvals and credit guarantees from multilateral development partners. Pakistan’s finance ministry said last month that pre-launch work included talks with potential investors, underwriters, guarantors, rating agencies and legal advisers in Beijing.

The government sees the panda bond as part of a broader strategy to stabilize the economy and move toward export-driven growth.

“We want to start with the panda bond,” Aurangzeb said, framing the debut issue as a first step back into capital markets.

Pakistan has struggled with a prolonged economic crisis since 2022, which weakened its currency, slashed growth and forced the government into a $7 billion International Monetary Fund bailout approved last year. By tapping Chinese markets, officials hope to diversify financing options, reduce reliance on Western debt, and boost foreign exchange reserves.

Investor roadshows for the inaugural issue were held in Beijing in July, where finance ministry officials briefed Chinese institutions and potential buyers on the proposed bond.


Spin-heavy Pakistan hit form, but India boycott risks early T20 exit

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Spin-heavy Pakistan hit form, but India boycott risks early T20 exit

  • Pakistan face must-win group matches, leaving no margin for error in T20 World Cup progression
  • Recent series wins have restored confidence, but batting volatility remains Pakistan’s biggest risk

LAHORE: Pakistan’s spin-heavy squad are in winning form ahead of the T20 World Cup, but a controversial decision to forfeit their marquee clash against India could still trigger another early exit.

Pakistan came close to withdrawing from the tournament in solidarity with Bangladesh, who pulled out after refusing to play in India, citing security concerns.

The Pakistan government eventually cleared the team’s participation but it barred them from facing India in Colombo in a blockbuster clash on February 15.

With two points for a win, a forfeit of the match will leave Pakistan with no margin for error if they are to progress as one of the top two from a five-team Group A.

It means they must win their opening game against the Netherlands in Colombo on Saturday and beat the United States three days later to stay in contention.

Their final group game will be against Namibia on February 18.

Captain Salman Agha said the move to boycott the India game was out of the team’s hands.

“That is not our decision. We have to follow what our government decides,” he said.

The Pakistan government has not said what their stance might be if the team were to end up facing India again in the semifinals or final. Agha was not thinking about that.

“Our job is to win, and we are capable of doing that,” he said.

Pakistan will be keen to avoid a repeat of the last T20 World Cup in 2024, where a shock super over defeat to co-hosts the United States led to them failing to get out of the group.

The side has since faced criticism for failing to adapt to the modern demands of T20 cricket, with the batting, particularly Babar Azam’s low strike rate, under scrutiny.

The criticism was fueled by Pakistan’s record last year, where 21 of their 34 T20 international wins came against lower-ranked opponents.

CONFIDENCE RESTORED
Against elite teams, the results were sobering: three losses to India in the Asia Cup and a 4-1 series defeat to New Zealand.

However, Agha believes recent performances have restored confidence.

Pakistan beat South Africa 2-1, won a home tri-series, and then completed a 3-0 sweep of an under-strength Australia.

“We’ve had good preparation by beating Australia. We have the luxury of quality spinning all-rounders like Mohammad Nawaz, Shadab Khan and Saim Ayub.

“We’re ticking most boxes and believe we can win the World Cup,” Agha said.

The spin department has been strengthened by Abrar Ahmed and Usman Tariq, the latter known for his unusual, slingy action and exaggerated pause at the crease.

The pace attack is led by the experienced Shaheen Shah Afridi and Naseem Shah.

Faheem Ashraf provides seam-bowling all-round support and newcomer Salman Mirza has been impressive.

Batting remains Pakistan’s most volatile component.

When openers Saim Ayub and Sahibzada Farhan provide strong starts, the side can post competitive totals, but collapses remain a constant threat.

Head coach Mike Hesson has added another layer of risk by leaving out experienced wicketkeeper Mohammad Rizwan because of poor form, opting instead for makeshift options in Usman Khan, Khawaja Nafay and Farhan.

For Pakistan, the ingredients for a deep run are present, but with points potentially forfeited, there is little room left for error.