Pakistan is hopeful of issuing its first-ever Panda bond before the Chinese New Year in February 2026, a move described as a major step in strengthening the country’s external financing strategy.
The announcement was made by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb during an interview with China Global Television Network.
The finance minister said the Panda bond will allow Pakistan to raise funds from China’s domestic capital market, which is the second-largest in the world.
This will help Pakistan reduce its reliance on the US dollar and diversify its funding sources alongside euro bonds and sukuk.
A Panda bond is a bond issued in Chinese Renminbi by a foreign government or company within China. Aurangzeb noted that Pakistan had not fully used this opportunity in the past but now expects strong interest from Chinese investors.
Highlighting Pakistan-China ties, the minister said China is Pakistan’s largest trading partner, with bilateral trade reaching nearly $17 billion in the first eight months of the year. He added that cooperation under the China-Pakistan Economic Corridor remains central to Pakistan’s development.
Aurangzeb explained that while CPEC’s first phase focused on infrastructure, the second phase now emphasizes business-to-business cooperation and better use of existing assets.
He said agriculture, mining, artificial intelligence, and the digital economy are key areas for future Chinese investment.
The minister concluded that Pakistan and China share a clear economic roadmap and remain aligned on long-term cooperation, despite global economic and geopolitical challenges.