KARACHI: Pakistan’s first Panda Bond issuance marks a “transformational” step in its financial landscape and opens a new phase of economic cooperation with China by giving the country access to the world’s second-largest capital market, Finance Minister Muhammad Aurangzeb said.
Speaking to China Global Television Network (CGTN) after the official issuance ceremony in Beijing, Aurangzeb said the transaction reflects growing confidence among Chinese institutions and global investors in Pakistan’s macroeconomic stability, reform trajectory and policy direction.
In a statement released on Saturday, he said the Panda Bond debut is significant not only for Pakistan’s financing strategy but also for the internationalisation of the renminbi. Nearly a quarter of Pakistan-China bilateral trade is already being settled in RMB and Chinese yuan, he added, underscoring deeper financial integration between the two countries.
Aurangzeb said the second phase of the China-Pakistan Economic Corridor (CPEC) is shifting from infrastructure-led development under the Belt and Road Initiative towards business-to-business cooperation, industrial partnerships and the monetisation of infrastructure assets. He said both countries’ strategic priorities remain aligned in promoting connectivity, trade, investment and sustainable growth.
He also said Pakistan had managed first-order challenges arising from regional tensions, including disruptions in procurement and logistics, while maintaining macroeconomic stability and keeping key indicators on track.
The finance minister reiterated the government’s commitment to structural reforms, fiscal discipline and investment-friendly policies aimed at supporting long-term growth. He pointed to ongoing reforms in taxation, energy, state-owned enterprises and digital governance as key drivers of improved investor sentiment.
Aurangzeb’s remarks followed Pakistan’s first-ever Panda Bond issuance ceremony held in Beijing on Friday, marking the country’s entry into China’s domestic onshore bond market and a milestone in its financial diversification strategy.
The overall panda bond programme is valued at $1 billion, with the inaugural issuance amounting to $250 million. The transaction is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), and was attended by officials from China’s Ministry of Finance and the People’s Bank of China.
He expressed appreciation for the support of the Chinese government, regulators, financial institutions and multilateral partners, saying the issuance would pave the way for future sovereign deals and deeper financial connectivity between Pakistan and China.
