Pakistan's economic revival in full swing

May 15, 2026 (MLN): The country's economy was experiencing renewed stability, disciplined reforms, and forward-looking transformation, said Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue.

He highlighted improvements in macroeconomic indicators, including stronger GDP growth, sharply reduced inflation, improved foreign exchange reserves, fiscal consolidation, and a stabilised external sector supported by resilient exports and robust remittance inflows.

He made these remarks while addressing the inaugural Panda Bond Issuance Ceremony held at the Embassy of Pakistan in Beijing.

The successful issuance showed trust, partnership, innovation, financial collaboration, and a shared commitment to sustainable development and regional connectivity, the Finance Minister said while addressing representatives of the Government of China, multilateral development banks, rating agencies, financial institutions, investors, and distinguished guests.

The occasion carried special significance as Pakistan and China celebrate 75 years of diplomatic relations founded on mutual respect, strategic trust, and unwavering support for each other's progress, he stated.

The Panda Bond issuance demonstrated the growing maturity of bilateral economic cooperation and the confidence of Chinese institutions and investors in Pakistan's economic direction, he noted. Pakistan was proud to become the first Panda Bond issuer from South Asia, he added.

Pakistan had successfully established a CNY 7.2 billion Panda Bond Programme after two years of extensive preparation and coordination with Chinese regulators, development partners, advisors, and market participants, Senator Muhammad Aurangzeb informed participants.

The debut issuance of CNY1.75bn received an overwhelmingly positive response and was oversubscribed, showing strong investor confidence in Pakistan's economic outlook and reform agenda, he noted.

The leadership and support provided by China International Capital Corporation (CICC) as lead underwriter, alongside Bank of China, Standard Chartered Bank, and Hongta Securities as joint lead underwriters as well as HBL as financial advisor was appreciated by the Finance Minister.

He also expressed gratitude to the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) for their credit-enhancement guarantees, which helped facilitate Pakistan's successful entry into the Chinese onshore bond market.

This was Pakistan's first Sustainable Panda Bond, with proceeds earmarked for projects in the water, energy, and health sector, underscoring the Government's commitment to inclusive and sustainable growth, the Finance Minister stated highlighting the sustainable dimension of the issuance.

The Government was advancing tax reforms through digitalisation and expansion of the tax base, implementing energy sector reforms to address circular debt and improve efficiency, and pursuing state-owned enterprise reforms through restructuring and privatisation initiatives, he further noted.

Pakistan's investment climate was improving through regulatory simplification, digital governance, and targeted sectoral reforms, he added.

Adherence to the reform agenda had strengthened macroeconomic foundations and reinforced market confidence in the country's economy, said Senator Muhammad Aurangzeb, reaffirming Pakistan's strong commitment to the IMF programme.

The Government of the People's Republic of China, particularly the Ministry of Finance of China, the People's Bank of China, and NAFMII, deserved recognition for their invaluable support and facilitation throughout the process, the Finance Minister remarked.

He also acknowledged the contribution of CCXI, Fangda Partners, A&Q, the Ministry of Finance team, and the Embassy of Pakistan in Beijing.

The successful issuance marked not the end, but the beginning of a long-term partnership between Pakistan and the Chinese capital market, Senator Muhammad Aurangzeb concluded.

The establishment of the CNY 7.2bn programme would provide Pakistan with a strong platform for future issuances and further deepen financial connectivity and sustainable economic cooperation between Pakistan and China, he expressed confidence.

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