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Pakistan is moving closer to launching its first Panda Bond, as the government lines up a structured USD 1 billion program with an inaugural issuance targeted for January. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting at the Finance Division to assess progress on the debut offering. Officials from the Debt Management Office and senior Finance Division officers briefed him on approvals, investor outreach, and regulatory timelines.
The government has already secured approvals from multilateral partners, while engagement with Chinese institutional investors has shown strong momentum. According to the briefing, investor response has been broad-based and highly constructive, reflecting rising confidence in Pakistan’s macroeconomic stabilization, improved policy framework, and medium-term outlook. Final approvals from Chinese regulators are expected by early January, after which the issuance is planned to be launched and closed within the same month.
Senator Muhammad Aurangzeb stressed that entry into China’s onshore bond market is part of a disciplined and programmatic financing strategy. The Panda Bond program is planned at around USD 1 billion, with the first tranche sized at an equivalent of USD 250 million. Work on subsequent offerings under Panda Series II has already begun, and Chinese authorities have been informed of the phased rollout.
Officials noted that current market conditions remain supportive, with orderly trading and sustained investor interest. Documentation and guarantees are in place, while engagement with financial institutions continues as scheduled.
The meeting also reviewed early outreach for Panda Series II, with proposals expected around the closing of the inaugural tranche. Pricing decisions will be finalized closer to market engagement, once all regulatory steps are complete.
Wrapping up the discussion, the finance minister expressed satisfaction with the pace of progress. He reaffirmed the government’s focus on prudent, market-based financing, adding that the inaugural Panda Bond will strengthen medium-term debt sustainability and diversify Pakistan’s funding sources.
