Chinese investor interest shows great confidence in Pakistan’s economic reforms
Minister of Finance and Revenue, Senator Muhammad Aurangzeb. Photo: APP
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, while chairing a meeting at the Finance Division, reviewed the progress made in Pakistan’s inaugural Panda Bond issuance as part of a planned $1 billion program aimed at diversifying sources of financing and supporting debt sustainability.
The meeting was briefed by officials from the Debt Management Office of the Ministry of Finance on regulatory approvals, investor awareness and market readiness, as Pakistan prepares to enter the Chinese domestic bond market with the first issuance scheduled for January.
Pakistan advances towards $1 billion Panda bond program, with inaugural issuance scheduled for January
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, today chaired a meeting at the Finance Division to review the progress made under Pakistan’s first Panda Bond… pic.twitter.com/5BtCRTX2R0
– Ministry of Finance, Government of Pakistan (@Financegovpk) December 19, 2025
According to the briefing document, approvals from multilateral partners have already been secured, while engagement with Chinese institutional investors has been described as “constructive”, with strong and widespread interest despite competitive market conditions. Investor returns reflect growing confidence in Pakistan’s macroeconomic stabilization, an improved policy and reform framework, and a more positive medium-term outlook.
Read: ADB and AIIB support Panda bonds with $250 million
Final regulatory approvals from relevant Chinese authorities are expected in early January, subject to the inaugural issuance being launched and concluded later that month.
The Finance Minister highlighted that Pakistan’s entry into the Chinese bond market was being pursued under a structured and programmatic financing strategy aligned with prudent debt management. The overall Panda Bond program is envisioned at around $1 billion, with the first tranche planned at an equivalent of $250 million.
Officials told the meeting that preparatory work for subsequent issuances under “Panda Series II” had already begun, with Chinese regulators being kept informed of the phased approach. Initial contact with financial institutions for the second round has also been undertaken, with proposals expected around the conclusion of the inaugural agreement.
Learn more: FinMin promises sale of PIA and Panda Bond by the end of the year
Participants noted that market conditions remain favorable, documentation and collateral are in place and engagement with financial institutions is progressing as planned. Prices will be determined closer to market commitment once all regulatory requirements have been met.
Concluding the meeting, FinMin expressed satisfaction with the pace of progress and reiterated the government’s commitment to market-based financing, saying the issuance of Panda bonds would strengthen Pakistan’s medium-term debt sustainability and further diversify its financing base.
Earlier, FinMin had said the first Panda Bond would target around $200 million, signaling Pakistan’s intention to tap China’s interbank bond market for the first time after relying heavily on dollar and euro-denominated issuances. Likewise, the proposed measure aims to diversify external financing sources, strengthen financial engagement with China, and leverage recent improvements in macroeconomic indicators and sovereign credit ratings to support economic stabilization.
