Pakistan nears January debut of $1bn Panda Bond

December 19, 2025 (MLN): Pakistan is moving closer to its debut in China’s onshore bond market, with the inaugural issuance under a planned $1 billion Panda Bond program targeted for January. 

The aforementioned information was shared by Khurram Schehzad, Advisor to the Finance Minister, through his post on X today.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a review meeting at the Finance Division to assess progress on Pakistan’s first-ever Panda Bond issuance.

The Finance Minister emphasized that Pakistan’s entry into the Chinese onshore bond market is being pursued as a structured and programmatic financing strategy, aligned with prudent debt management objectives.

The Panda Bond program is envisaged at approximately $1 billion, with the inaugural tranche planned at an equivalent of $250 million.

Preparatory work for subsequent issuances under “Panda Series II” has already commenced, with Chinese regulatory authorities fully apprised of this phased approach. Participants highlighted that prevailing market conditions remain supportive, with broad-based investor interest and orderly market functioning.

Documentation and guarantees are in place, and engagement with financial institutions is progressing as planned.

The meeting was briefed by the Debt Management Office along with senior officials of the Finance Division on approvals, investor outreach, and regulatory milestones.

According to the briefing, approvals from multilateral partners have been secured, while engagement with Chinese institutional investors has remained constructive.

The meeting noted that approvals from multilateral partners have been secured and that engagement with Chinese institutional investors has been constructive.

Investor sentiment has been particularly strong and highly constructive, with broad-based interest and encouraging feedback from a diversified investor base in this competitive inaugural issuance.

This reflects strengthening confidence in Pakistan’s macroeconomic stabilization, an improved policy and reform framework, and a positive medium-term outlook.

Final regulatory approvals from the relevant Chinese authorities are expected by early January, subject to which the inaugural issuance is planned to be launched and concluded in January.

The meeting was also informed that initial outreach has been undertaken with financial institutions for Panda Series II, with proposals expected around the closing of the inaugural issuance.

Pricing will be determined closer to market engagement, following the completion of all regulatory requirements.

Concluding the meeting, the Finance Minister expressed satisfaction with the progress achieved and reaffirmed the government’s commitment to prudent, market-based financing.

He noted that the inaugural Panda Bond issuance will further support Pakistan’s medium-term debt sustainability and help diversify the country’s funding sources.

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