Pakistan is advancing plans for its first-ever Panda bond issuance, with an initial tranche of $250 million under a broader $1 billion programme, Finance Minister Muhammad Aurangzeb said on Friday.

Chairing a meeting at the Finance Division to review progress on the issuance, the minister was briefed by the Debt Management Office and senior officials on regulatory approvals, investor engagement and documentation status.

According to an official statement, approvals from multilateral partners have already been secured, while engagement with Chinese institutional investors has been described as constructive, with early feedback indicating broad-based interest.

Officials noted that market conditions remain supportive and that documentation and guarantees required for the issuance are in place. Final regulatory approvals from relevant Chinese authorities are expected shortly, after which the inaugural issuance is planned for January.

Aurangzeb said Pakistan’s entry into China’s onshore bond market is being pursued as part of a structured and programmatic financing strategy, aligned with prudent debt management objectives.

The Panda bond programme is envisaged at around $1 billion, with the first tranche planned at an equivalent of $250 million. Preparatory work for subsequent issuances under a second phase of the programme is already underway, with Chinese regulators kept informed of the roadmap.

The finance minister said the planned issuance would help diversify Pakistan’s funding sources and support medium-term debt sustainability.