KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb this week met his Chinese counterpart in Bangkok during which the two sides discussed Islamabad’s plans for further panda bond issuances under the approved RMB 7.2 billion [$1 billion] program, the Finance Division said.

Pakistan issued its first panda bond worth 1.75 billion yuan ($261 million) in May as part of a broader 7.2 billion yuan program, with partial guarantees from the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB).

Aurangzeb said earlier this week that the inaugural issuance would not be a “one-time issuance” and that Pakistan intended to “keep going back and be a repeat issuer,” citing China as the second largest capital market in the world.

Aurangzeb met Lan Fo’an, China’s finance minister, on the sidelines of the IMF-World Bank annual meetings in Bangkok on Thursday. Talks focused on strengthening bilateral financial cooperation, expanding access to international capital markets, and advancing regional economic collaboration, the Finance Division said.

“Discussions also covered Pakistan’s return to the Eurobond market after four years and plans for further panda bond issuances under the approved RMB 7.2 billion program, with continued AIIB support,” the statement said.

Aurangzeb highlighted Pakistan’s progress toward macroeconomic stability and expressed appreciation for China’s longstanding support, particularly during challenging economic circumstances.

Fo’an welcomed Pakistan’s improving economic position and renewed access to global financial markets, the Finance Division said.

Aurangzeb reiterated Pakistan’s intention to establish a sustained presence in the Chinese capital market as a repeat sovereign issuer.

The two sides also exchanged views on the proposed establishment of the Shanghai Cooperation Organization’s Development Bank as an important initiative for regional financial cooperation.

“The Chinese side sought Pakistan’s active participation in ongoing consultations and support for building consensus on the proposed institution,” the Finance Division said.

Pakistan’s move to issue panda bonds highlights its efforts to diversify its external sources of funding and reduce reliance on dollar borrowing. The South Asian country seeks greater financial cooperation with China as it moves to secure its economy from external shocks and eyes sustainable economic growth.