Key Points
- CNY 1.75 billion issuance receives an oversubscribed investor response
- Islamabad establishes an overall CNY 7.2 billion Panda Bond programme
- Sustainable bond proceeds allocated for water, energy and health projects
- Finance minister highlights reforms and improving economic stability
ISLAMABAD: Pakistan on Friday held a ceremony in Beijing to mark the successful launch of its first-ever Panda Bond, which Finance Minister Muhammad Aurangzeb described as a milestone in Pakistan-China financial cooperation and investor engagement.
Addressing the inaugural Panda Bond Issuance Ceremony at the Embassy of Pakistan in Beijing, Aurangzeb said the successful entry into China’s onshore capital market reflected growing confidence among Chinese investors and institutions in Pakistan’s economic reforms and financial outlook.
Pakistan had earlier launched its debut CNY 1.75 billion Panda Bond as part of an overall CNY 7.2 billion programme.
It was established after nearly two years of coordination with Chinese regulators, development partners and financial institutions. Officials said the issuance received an oversubscribed response from investors.
The finance minister said Pakistan had become the first South Asian country to issue a Panda Bond in China’s domestic bond market, calling the development an important step in expanding bilateral financial connectivity as the two countries mark 75 years of diplomatic relations.
Aurangzeb said the Sustainable Panda Bond would support projects in the water, energy and health sectors, underscoring the government’s commitment to sustainable and inclusive growth.
Highlighting Pakistan’s economic trajectory, he pointed to improving macroeconomic indicators, including stronger growth, lower inflation, improved foreign exchange reserves and a stabilising external sector supported by exports and remittances.
He said the government was continuing reforms in taxation, energy and state-owned enterprises alongside broader efforts to improve the investment climate through regulatory simplification and digital governance.
Aurangzeb also reaffirmed Pakistan’s commitment to its IMF-backed reform programme, saying policy continuity and fiscal discipline had strengthened market confidence.
The minister thanked Chinese authorities, including the Ministry of Finance of China and the People’s Bank of China. He also lauded multilateral institutions and financial advisors involved in the transaction.
China International Capital Corporation served as lead underwriter, with Bank of China, Standard Chartered Bank and Hongta Securities acting as joint lead underwriters.
HBL served as financial advisor, whereas the Asian Infrastructure Investment Bank and the Asian Development Bank provided credit-enhancement guarantees.
