Islamabad – Pakistan is making significant strides toward its inaugural Panda Bond issuance, targeting a launch in January 2026, as part of a broader $1 billion program, according to a high-level meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Friday, December 19, 2025. The Finance Division reviewed progress, signaling growing confidence in Pakistan’s economic stabilization efforts.
The Debt Management Office briefed the minister on secured approvals from multilateral partners, including $285 million in guarantees from the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) for the initial $250 million tranche. Engagement with Chinese institutional investors has been positive, with broad-based interest reflecting trust in Pakistan’s improved policy framework and medium-term outlook. Final regulatory approvals from Chinese authorities are expected by early January, paving the way for the debut issuance.
Minister Aurangzeb emphasized that this move into China’s onshore bond market aligns with a prudent, structured financing strategy to diversify funding sources and enhance debt sustainability. The $1 billion Panda Bond program will unfold in phases, with the inaugural tranche set at $250 million and preparatory work for “Panda Series II” already underway. Prevailing market conditions remain supportive, with documentation and guarantees in place, and financial institutions engaged for future issuances.
The meeting highlighted that pricing will be finalized closer to the launch, following regulatory clearance. Initial outreach for subsequent tranches is progressing, with proposals anticipated post-inaugural issuance. This development comes as Pakistan operates under a $7 billion IMF bailout, focusing on fiscal consolidation and structural reforms, though the minister clarified the bond is a strategic diversification step, not tied to the IMF calendar.
The Finance Minister expressed satisfaction with the progress, reaffirming the government’s commitment to market-based financing. This landmark issuance could bolster Pakistan’s financial credibility and reduce reliance on traditional dollar markets, marking a new chapter in its economic strategy.