The meeting was briefed by officials of the Ministry of Finance’s Debt Management Office on regulatory approvals, investor outreach and market readiness, as Pakistan prepares to enter China’s onshore bond market with the first issuance targeted for January.
Pakistan Advances Toward USD 1 Billion Panda Bond Program with Inaugural Issuance Targeted for January
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting at the Finance Division today to review progress on Pakistan’s inaugural Panda Bond… pic.twitter.com/5BtCRTX2R0
— Ministry of Finance, Government of Pakistan (@Financegovpk) December 19, 2025
According to the briefing, approvals from multilateral partners have already been secured, while engagement with Chinese institutional investors has been described as “constructive,” with strong and broad-based interest despite competitive market conditions. Investor feedback reflects growing confidence in Pakistan’s macroeconomic stabilisation, an improved policy and reform framework, and a more positive medium-term outlook.
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Final regulatory approvals from the relevant Chinese authorities are expected by early January, subject to which the inaugural issuance is planned to be launched and concluded within the month.
The finance minister underscored that Pakistan’s entry into the Chinese bond market is being pursued as a structured, programmatic financing strategy aligned with prudent debt management. The overall Panda Bond programme is envisaged at around $1 billion, with the first tranche planned at an equivalent of $250 million.
Officials told the meeting that preparatory work for subsequent issuances under “Panda Series II” has already begun, with Chinese regulators kept informed of the phased approach. Initial outreach to financial institutions for the second series has also been undertaken, with proposals expected around the closing of the inaugural deal.
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Participants noted that market conditions remain supportive, documentation and guarantees are in place, and engagement with financial institutions is progressing as planned. Pricing will be determined closer to market engagement following the completion of all regulatory requirements.
Concluding the meeting, FinMin expressed satisfaction with the pace of progress and reiterated the government’s commitment to market-based financing, saying the Panda Bond issuance would strengthen Pakistan’s medium-term debt sustainability and further diversify its funding base.
Earlier, the FinMin had indicated that the inaugural Panda Bond would target around $200 million, signalling Pakistan’s intent to tap the Chinese interbank bond market for the first time after relying largely on dollar and euro-denominated issuances. Similarly, the proposed move is aimed at diversifying external financing sources, strengthening financial engagement with China, and leveraging recent improvements in macroeconomic indicators and sovereign credit ratings to support economic stabilisation.