Pakistan’s first Panda Bond issuance historic milestone, says Finane Minister Aurangzeb

Beijing (Web Desk): Finance Minister Muhammad Aurangzeb has called the successful launch of Pakistan’s first Panda Bond a major breakthrough in strengthening country’s financial ties with China and expanding its presence in international debt markets.

Addressing the launch ceremony of the inaugural Panda Bond in Beijing, he said the development stands as a clear sign of trust, cooperation, financial innovation, and a joint vision for sustainable development and improved regional connectivity between the two countries.

The minister added that the achievement is particularly meaningful as Pakistan and China are celebrating 75 years of diplomatic relations based on mutual confidence, respect, and consistent support for each other’s development journey.

Aurangzeb said that the transaction also reflects the growing depth of economic cooperation and the increasing confidence of Chinese investors and institutions in Pakistan’s economic trajectory, noting that Pakistan has now become the first South Asian country to issue a Panda Bond.

He further explained that Pakistan has successfully built a 7.2 billion Chinese Yuan Panda Bond framework following two years of extensive preparation, coordination, and consultation with Chinese regulatory authorities, financial institutions, advisers, and market participants.

The finance minister highlighted that the debut issuance worth 1.75 billion Chinese Yuan attracted strong demand and was oversubscribed, which he said demonstrates robust investor confidence in Pakistan’s reform programme and economic outlook.

The minister acknowledged the role of China International Capital Corporation as the lead underwriter, along with Bank of China, Standard Chartered Bank, and Hongta Securities serving as joint lead underwriters, while HBL acted as financial adviser.

Aurangzeb also expressed appreciation for the support of the Asian Infrastructure Investment Bank and the Asian Development Bank, whose credit enhancement guarantees played an important role in enabling Pakistan’s entry into China’s domestic bond market.

Describing the instrument as Pakistan’s first Sustainable Panda Bond, he said the funds raised will be directed toward projects in the water, energy, and health sectors, reflecting the government’s commitment to inclusive growth and sustainability.

The minister also pointed to improving economic indicators, including stronger growth momentum, easing inflation pressures, improved foreign exchange reserves, fiscal discipline, and stabilization of the external account supported by rising exports and steady remittance inflows.

He went on to outline ongoing structural reforms, including tax system digitalization and broadening of the tax base, energy sector reforms aimed at reducing circular debt and improving efficiency, and restructuring and privatization of state-owned enterprises.

Aurangzeb added that regulatory simplification and digital governance initiatives are helping create a more favorable investment environment. Reaffirming Pakistan’s commitment to the IMF programme, he said continued adherence to reforms has reinforced macroeconomic stability and strengthened investor confidence.

The finance minister said that the Panda Bond issuance should be seen as the start of a long-term financial partnership between Pakistan and China rather than a one-time achievement, adding that the 7.2 billion Yuan programme will provide a strong foundation for future issuances and further deepen financial integration and sustainable economic cooperation between the two countries.