Pakistan, China review Panda Bond success, eye more issuances

October 16, 2026 (MLN): Pakistan and China have explored ways to strengthen financial cooperation, widen access to international capital markets and advance regional economic collaboration, with Beijing welcoming Islamabad’s improving economic position and its return to global financial markets.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met China’s Minister of Finance, Lan Fo’an, on the sidelines of the World Bank Group-IMF Annual Meetings 2026 in Bangkok, Thailand, said a press release issued.

During the meeting, Senator Aurangzeb highlighted Pakistan’s progress towards macroeconomic stability and expressed appreciation for China’s longstanding support, particularly during difficult economic circumstances.

The Chinese Finance Minister welcomed the improvement in Pakistan’s economic position and its renewed access to global financial markets.

The two ministers reviewed Pakistan’s inaugural Panda Bond issuance, including regulatory support, credit enhancement from the Asian Infrastructure Investment Bank (AIIB), a competitive 2.5% coupon and strong investor demand. Aurangzeb reiterated Pakistan’s intention to build a sustained presence in the Chinese capital market as a repeat sovereign issuer.

The talks also covered Pakistan’s return to the Eurobond market after four years and plans for further Panda Bond issuances under the approved RMB 7.2 billion programme, with continued AIIB support.

Both sides also turned to Pakistan’s chairmanship of the Shanghai Cooperation Organisation (SCO), including preparations for the forthcoming summit and the preceding SCO Finance Ministers’ Meeting in Islamabad.

Lan Fo’an expressed his intention to attend the ministerial meeting.

The ministers exchanged views on the proposed SCO Development Bank, which was described as an important initiative for regional financial cooperation.

The Chinese side sought Pakistan’s active participation in ongoing consultations and its support in building consensus on the proposed institution, while Aurangzeb reaffirmed Pakistan’s commitment to advancing the bank’s establishment.

On bilateral infrastructure, the Chinese Finance Minister pointed to progress towards consensus on proposed changes to the route of a China-Pakistan highway project.

On digital transformation and skills, Senator Aurangzeb briefed his Chinese counterpart on Pakistan’s engagement with Alibaba to advance digital transformation and artificial intelligence skills training.

He reaffirmed the government’s commitment to implementing the cooperation framework and strengthening cooperation in these areas.

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