Pakistan is preparing to launch its first-ever yuan-denominated Panda bond in China’s capital market, Finance Minister Muhammad Aurangzeb has announced, describing the move as a major step toward diversifying the country’s international financing sources.
Speaking at a press conference, the finance minister said the government expected positive developments next week regarding the bond issuance, which would mark Pakistan’s debut in the Chinese financial market.
The planned issue is valued at $250 million and represents the first tranche of a broader $1 billion program. The bond will reportedly be supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
Aurangzeb said the country’s economy was gradually stabilizing, pointing to improvements in exports and workers’ remittances.
However, he acknowledged that regional tensions, including the conflict involving Iran and disruptions linked to the Strait of Hormuz, had placed additional pressure on Pakistan’s economy due to its dependence on imported fuel and gas.
The finance minister also revealed that Pakistan was exploring additional financing options, including Eurobonds and commercial borrowing from international markets, to help manage foreign exchange reserves and replace a $3.5 billion financial facility from the United Arab Emirates.
