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.
