Pakistan plans to issue up to $250m panda bond in 4Q 2025

March 27, 2025 (MLN): Pakistan plans to issue a Panda bond in the range of $200 million to $250m.

The issuance will likely take place in the fourth quarter of this year, Finance Minister Muhammad Aurangzeb said in an interview with China Global Television Network (CGTN) on the sidelines of the Boao Forum.

“I have been advocating, and I am very keen, that Pakistan—taking advantage of the second-largest and deepest capital market in the world—goes for an inaugural Panda bond", he added.

“Pakistan has previously issued many bonds in US dollars and euros, but we have not tapped into the Chinese capital market. We are very hopeful that during this calendar year, we will do that", he further noted.

According to a Radio Pakistan report citing the interview, he highlighted agriculture, artificial intelligence, and technology as key sectors with strong potential for Chinese investment and technical assistance.

The Finance Minister commended China’s remarkable progress in green projects and environmental sustainability, describing it as a model for the world.

He expressed a desire to benefit from China’s expertise in these areas.

He highlighted China’s significant investments in Pakistan’s infrastructure and energy sectors under the Belt and Road Initiative, as well as the technical and financial assistance provided by China.

The Finance Minister discussed efforts to revive Pakistan’s agricultural sector and transform it into a true engine of growth.

He mentioned Prime Minister Shehbaz Sharif’s tour to China last summer, during which the Prime Minister visited agricultural universities and observed vertical farming in Shaanxi Province.

He said around 1,000 Pakistani students and agricultural experts would soon come to China for training, skill development, and technology transfer under the guidance of Chinese experts.

He emphasized the enduring and sustainable long-term relationship between Pakistan and China, acknowledging the assistance provided by China to Pakistan.

Aurangzeb praised China’s efforts to open its economy and markets, noting the significant role of foreign companies in China’s exports.

He emphasized Pakistan’s desire to serve as a hub for export-oriented facilities and services, particularly from Chinese firms.

He also highlighted the ongoing development of communication infrastructure, roads, and ports in Pakistan under the China-Pakistan Economic Corridor (CPEC) project.

The minister further stressed the need to maximize the financial benefits of this infrastructure and enable Chinese industries to leverage it.

He reaffirmed Pakistan’s commitment to enhancing regional trade and strengthening road and rail links with neighboring countries.

Aurangzeb pointed out that China’s export sector and companies stand to benefit from Pakistan’s existing infrastructure and low-cost labor.

Additionally, the minister expressed interest in China’s digital transformation, particularly in the banking sector, and underscored the potential for Pakistan to learn from China's experiences, especially in improving financial inclusion through digital solutions.

He also emphasized the importance of enhancing bilateral cooperation in key sectors, including financial technology, agriculture, and drone technology.

Copyright Mettis Link News