Finance Minister Muhammad Aurangzeb has announced that Pakistan is preparing to re-enter international capital markets, starting with the issuance of a Panda bond before the end of the year.
At the CIPFA-ICAP Public Financial Management Conference 2025, Aurangzeb expressed optimism about the inaugural Panda bond issue. Discussions are underway for its launch during upcoming talks in China, to be conducted alongside Prime Minister Shehbaz Sharif.
The minister noted that Pakistan may explore additional international markets—such as the GMTN (Global Medium-Term Note) market—as its credit ratings and spreads improve.
Supporting this strategy, Pakistan has also requested an additional 10 billion yuan ($1.4 billion) to expand its existing swap line with China from 30 billion to 40 billion yuan. Aurangzeb stated that this request, along with collaboration with the AIIB and ADB for credit enhancements, is intended to smooth the way for the initial Panda bond issuance.
READ MORE: Pakistan Launches Digital Prize Bonds – Key Details Inside
Bloomberg had earlier reported that Pakistan is preparing to debut yuan-denominated bonds this year to bolster its finances. Reuters also highlighted the nation’s broader ambitions of raising up to $1 billion in international bonds in fiscal 2025/26, with the first tranche involving a Panda bond worth approximately $250–300 million.
