Pakistan is preparing to issue its first-ever Panda bond in China’s domestic capital market, Finance and Revenue Minister Muhammad Aurangzeb said on Tuesday, describing the move as part of a broader effort to diversify external financing and strengthen bilateral economic engagement.
In an interview with China Global Television Network, Aurangzeb said the planned bond issuance reflects the evolution of Pakistan–China relations from infrastructure-led cooperation to a more market-oriented and diversified economic partnership.
He said Pakistan hopes to launch the inaugural Panda bond before the Chinese New Year, adding that access to China’s capital market would help reduce reliance on dollar-denominated borrowing while complementing eurobond and sukuk issuance.
The finance minister said China remains Pakistan’s largest trading partner, with bilateral trade reaching nearly $17 billion during the first eight months of the year, adding that economic cooperation between the two countries has expanded steadily over recent decades.
Aurangzeb noted that China has supported Pakistan at international forums and played a central role in its economic development, particularly through the China-Pakistan Economic Corridor. He said CPEC Phase-I focused on large-scale infrastructure projects, while Phase-II, formally launched after recent meetings with Xi Jinping and Li Qiang, aims to monetise existing assets and promote business-to-business cooperation.
The minister said agriculture, minerals and mining, artificial intelligence and the digital economy are priority sectors for Chinese investment, with an increasing focus on skills development and technology transfer. He cited training programmes for Pakistani agriculture graduates in Chinese universities and IT training initiatives supported by Chinese firms, including Huawei.
Referring to global economic uncertainty and rising protectionism, Aurangzeb said Pakistan remains focused on deepening cooperation with China, including support during periods of economic stress and engagement linked to Pakistan’s International Monetary Fund programme.
Aurangzeb said recent high-level engagements, including meetings on the sidelines of the Shanghai Cooperation Organisation summit in Tianjin, have provided a clearer economic roadmap for bilateral cooperation in the medium to long term.
