Pakistan is moving closer to launching its first-ever Panda bond, with authorities planning an inaugural issuance of $250 million in January 2026 under a wider $1 billion programme in China’s onshore capital market.
Finance Minister Senator Muhammad Aurangzeb chaired a review meeting at the Finance Division on Friday to assess progress on the transaction, including regulatory approvals, investor engagement, and documentation, according to an official press release.
Officials from the Debt Management Office and senior Finance Division representatives informed the minister that approvals from multilateral partners have already been secured. They added that outreach to Chinese institutional investors has produced constructive results, with strong interest and positive early feedback from a diversified investor base.
According to the statement, investor appetite reflects growing confidence in Pakistan’s macroeconomic stabilisation, an improved policy and reform framework, and a more positive medium-term economic outlook. Participants at the meeting also noted that current market conditions remain favourable, supported by orderly market functioning and robust investor demand.
Authorities confirmed that all key documentation and guarantees are in place, while engagement with potential investors is proceeding according to plan. Final regulatory approvals from relevant Chinese authorities are expected shortly, paving the way for the planned January issuance.
The finance minister emphasized that Pakistan’s entry into the Chinese onshore bond market is part of a structured and programmatic financing strategy aligned with prudent debt management objectives. The overall Panda Bond programme is estimated at approximately $1 billion, with the first tranche set at the equivalent of $250 million.
Preparatory work for subsequent issuances under a proposed “Panda Series II” is already underway, and Chinese regulators have been fully briefed on the multi-tranche structure, the statement said.
Concluding the meeting, Aurangzeb expressed satisfaction with the progress achieved and reiterated the government’s commitment to responsible, market-based borrowing. He noted that the inaugural Panda bond is expected to support Pakistan’s medium-term debt sustainability while broadening and diversifying the country’s external funding sources.
