Pakistan is preparing to issue its inaugural Panda Bond worth $250 million in January, marking a significant step in its $1 billion Panda Bond programme. Finance Minister, Senator Muhammad Aurangzeb, chaired a meeting on Friday to review the progress of the issuance, with the launch expected to proceed following final regulatory approvals from Chinese authorities.
During the meeting, the Finance Ministry’s Debt Management Office briefed officials on the status of approvals, investor engagement, and the regulatory processes involved. The inaugural issuance has seen strong engagement with Chinese institutional investors, with encouraging feedback and widespread interest from a diversified investor base.
The Panda Bond issuance is seen as a key part of Pakistan’s strategy to diversify its funding sources, with the Finance Minister stressing that it aligns with prudent debt management goals.
Investor sentiment has been bolstered by Pakistan’s macroeconomic stabilisation and ongoing policy reforms, with positive medium-term outlooks supporting the bond’s appeal.
The regulatory approvals for the bond are expected by early January, clearing the way for the launch of the first tranche. Discussions are already in progress for the subsequent Panda Series-II, with initial outreach to financial institutions underway. Pricing for future tranches will be determined based on market conditions closer to the issuance date.
The finance minister expressed satisfaction with the progress and reiterated the government’s commitment to market-based financing, which would enhance Pakistan’s debt sustainability and provide access to international capital markets.
