Pakistan is set to issue bonds worth $1 billion in phases in the Chinese capital market, with the first phase of Panda bonds valued at $250 million already receiving concept clearance.
According to official documents, Pakistan aims to raise funds through China’s interbank bond market, targeting the $1 billion mark in multiple phases under the Panda bond programme. Due to the country’s current credit rating, credit enhancement guarantees have been sought to support the issuance.
The Asian Development Bank (ADB) has agreed to provide a guarantee of $160 million, while the Asian Infrastructure Investment Bank (AIIB) will cover $125 million. With these guarantees, the Panda bond is expected to secure a AAA rating in China, significantly boosting investor confidence.
The Ministry of Finance has confirmed that the first Panda bond is planned to be issued before December 2025. Officials said the launch will mark a major milestone, giving Pakistan access to China’s large and liquid bond market for the first time.
The Panda bond programme is seen as part of Pakistan’s strategy to diversify its funding sources and strengthen financial ties with China while easing pressure on foreign exchange reserves.
