Finance minister leaves for China as Pakistan plans $250 million Panda bond issuance

Pakistan’s Finance Minister Muhammad Aurangzeb has departed for China as the government moves ahead with plans to launch its first Panda bond in the Chinese market, aiming to raise around $250 million during the ongoing week.

The planned issuance is part of efforts to diversify external financing sources and expand access to international capital markets beyond conventional dollar-denominated borrowing.

The proposed Panda bond launch comes after Pakistan raised $750 million through a Eurobond issuance last month, signaling renewed engagement with international investors.

During the same period, the government also secured $3 billion in deposits from Saudi Arabia while repaying approximately $3.4 billion to the United Arab Emirates.

Pakistan additionally received $1.3 billion from the International Monetary Fund on Wednesday following approval of disbursements under the Extended Fund Facility and the Resilience and Sustainability Facility programmes.

Officials said the Panda bond issuance would provide Pakistan access to Chinese capital markets and help broaden its external financing base.