Beijing : Finance Minister Muhammad Aurangzeb has described the successful launch of Pakistan’s first Panda Bond as a major milestone in strengthening financial cooperation with China and expanding access to international debt markets.
Addressing the launch ceremony in Beijing, he said the development reflects trust, cooperation, and shared commitment between Pakistan and China toward sustainable growth and improved regional connectivity.
The finance minister noted that the achievement is especially significant as both countries are marking 75 years of diplomatic relations, built on mutual respect and consistent support for each other’s development goals.
He highlighted that Pakistan has now become the first South Asian country to issue a Panda Bond, adding that a 7.2 billion Chinese Yuan framework was developed after two years of extensive preparation and coordination with Chinese regulatory bodies, financial institutions, and market participants.
Aurangzeb said the inaugural issuance of 1.75 billion Chinese Yuan received strong investor demand and was oversubscribed, reflecting growing confidence in Pakistan’s economic reforms and future outlook.
He acknowledged the role of key financial institutions, including China International Capital Corporation as lead underwriter, along with Bank of China, Standard Chartered Bank, and Hongta Securities as joint lead underwriters, while HBL served as financial adviser.
He also appreciated the support of the Asian Infrastructure Investment Bank and the Asian Development Bank, whose credit enhancement guarantees helped facilitate Pakistan’s entry into China’s domestic bond market.
Describing it as Pakistan’s first Sustainable Panda Bond, the minister said the funds will be directed toward water, energy, and health projects aimed at promoting inclusive and sustainable development.
Aurangzeb further said that improving macroeconomic indicators, including easing inflation, rising foreign exchange reserves, stronger exports, and steady remittance inflows, reflect ongoing economic stabilization.
He added that structural reforms are underway, including tax system digitization, energy sector reforms, and restructuring of state-owned enterprises, alongside regulatory simplification to improve the investment climate.
Reaffirming commitment to the IMF programme, he said continued reforms have strengthened macroeconomic stability and boosted investor confidence.
The finance minister concluded that the Panda Bond is not a one-time achievement but the beginning of a long-term financial partnership between Pakistan and China, paving the way for deeper financial integration in the future.
