Pakistan is preparing to raise $250 million through Panda bonds after receiving final regulatory approval from China, according to Finance Minister Muhammad Aurangzeb.
While briefing the National Assembly Standing Committee on Finance, the minister said the Chinese approval completed the last remaining requirement for the bond issuance.
He informed lawmakers that the government plans to launch the Panda bonds within the next 10 days.
The planned issuance is seen as an important step in Pakistan’s efforts to secure international financing and strengthen foreign exchange resources.
Panda bonds are yuan-denominated bonds issued in China by foreign governments or institutions to raise funds from Chinese investors.
Pakistan had initially planned to launch the bonds in December last year, but the process faced delays because of pending regulatory clearances. During this period, the government arranged alternative financing to meet its financial requirements.
Officials said Pakistan secured $750 million through a private placement managed by Standard Chartered Bank against Eurobonds while waiting for the Chinese approval process to finish.
The development follows Pakistan’s recent return to international financial markets after four years. Last month, the country issued $500 million in Eurobonds under its Global Medium-Term Note programme.
Due to strong interest from global institutional investors, the government later expanded the Eurobond issue to $750 million by exercising a greenshoe option and adding another $250 million.
Economic experts believe the Panda bond launch could help diversify Pakistan’s financing sources and improve investor confidence.
Officials also see the move as part of broader efforts to stabilize the economy and strengthen international financial cooperation.