Pakistan Moves Closer to Issuing First Panda Bond in China, Signals Strong Economic Confidence

Pakistan is close to launching its first-ever Panda Bond in China’s capital market, a step aimed at expanding external financing options and strengthening long-term economic cooperation with China, according to Finance Minister Senator Muhammad Aurangzeb.

In an interview with China Global Television Network, the finance minister said the upcoming bond issuance reflects growing international confidence in Pakistan’s economic direction. He noted that China remains Pakistan’s largest trading partner, with bilateral trade nearing $17 billion in the first eight months of the year.

Aurangzeb said the China-Pakistan Economic Corridor (CPEC) has entered its second phase, shifting focus from large infrastructure projects to business-to-business partnerships, private investment, and better use of existing assets.

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He highlighted agriculture, minerals and mining, artificial intelligence, and the digital economy as key areas attracting strong Chinese interest. Cooperation is also expanding into skills development and technology transfer.

The minister said the proposed Panda Bond, expected before the Chinese New Year, will help Pakistan access the world’s second-largest capital market and reduce reliance on dollar-based financing, alongside eurobonds and sukuk.