Pakistan is planning to raise more financing from China’s local debt market after the successful launch of its first yuan-denominated panda bond, according to Finance Minister Muhammad Aurangzeb.
According to Bloomberg, Pakistan’s first panda bond received strong investor interest, with subscriptions exceeding the offered amount by more than five times.
Through the bond sale, Pakistan raised $258 million, which officials described as the country’s lowest-cost foreign currency bond issuance to date.
In an interview, Aurangzeb said the government sees the panda bond initiative as part of a long-term funding strategy rather than a one-time transaction.
He explained that the overall panda bond program is valued at $1 billion, and Pakistan plans to continue issuing more renminbi-denominated bonds in future phases.
Pakistan has recently returned to international debt markets after staying away for several years due to the economic crisis and near-default situation faced in 2023.
Last month, the country also secured $500 million through a private placement deal, marking Pakistan’s first international market borrowing in four years.
The government has introduced several economic reforms under programs supported by the International Monetary Fund (IMF) to stabilize the economy, strengthen fiscal management, and rebuild investor confidence.
