Key Points:
• Pakistan plans to issue its first Panda Bond tranche in January, targeting $250 million.
• Engagement with Chinese investors shows strong interest and confidence in Pakistan.
• Bond Programme aims to diversify funding sources and support medium-term fiscal position.
ISLAMABAD: Pakistan is set to enter the Chinese onshore bond market with the $1 billion Panda Bond programme’s $250 million inaugural issuance scheduled for January 2026, the Finance Division announced on Friday.
Officials said approvals from multilateral partners have been secured, while engagement with Chinese institutional investors has been “strong and broad-based,” reflecting confidence in Pakistan’s macroeconomic stabilisation, improved policy framework, and medium-term growth outlook.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high-level meeting to review progress on the issuance. He took a detailed briefing on approvals, investor engagement, and regulatory clearances.
Officials highlighted that the positive response reflects confidence in Pakistan’s macroeconomic stabilisation, improved policy framework, and medium-term growth outlook.
Final regulatory approvals from Chinese authorities are expected by early January, following which the inaugural tranche will be launched. Preparations for subsequent issuances under “Panda Series II” are already underway, with Chinese regulators informed of the phased approach.
The Finance Minister emphasised that Pakistan’s entry into the Chinese bond market forms part of a structured and programmatic financing strategy, aligned with prudent debt management objectives. He noted that the initiative will diversify funding sources, enhance debt sustainability, and support medium-term fiscal stability.
Market conditions remain favourable, with documentation and guarantees in place, orderly market functioning, and broad investor interest. Pricing for the inaugural tranche will be finalised closer to market engagement once regulatory approvals are completed.
Concluding the meeting, Senator Aurangzeb expressed satisfaction with progress made, reaffirming the government’s commitment to prudent, market-based financing and noting the Panda Bond program as a key milestone in Pakistan’s debt management strategy.
