Pakistan set to issue first Panda Bond in China’s capital market
Pakistan is moving closer to issuing its first-ever Panda Bond in China’s domestic capital market, a step that underscores the growing depth and diversification of economic ties between Islamabad and Beijing. Finance Minister Muhammad Aurangzeb said the inaugural issuance is expected in the coming weeks, marking an important milestone in Pakistan’s engagement with Chinese financial markets.
In an interview with China Global Television Network (CGTN), the finance minister noted that the proposed Panda Bond reflects the maturity of Pakistan–China relations, which have steadily evolved from an infrastructure-focused partnership into a broader, market-driven economic relationship. He said the initiative demonstrates Pakistan’s intent to tap into diversified sources of financing while strengthening financial cooperation with its largest trading partner.
Highlighting the scale of bilateral economic engagement, Aurangzeb said trade between Pakistan and China approached $17 billion during the first eight months of the year, reinforcing China’s position as Pakistan’s leading trading partner. He added that the relationship has consistently grown stronger over the decades, supported by mutual trust and close coordination at multiple levels.
The finance minister also acknowledged China’s longstanding support for Pakistan at international forums and its pivotal role in the country’s economic development. He pointed to the China-Pakistan Economic Corridor (CPEC) as a cornerstone of this cooperation, describing it as the flagship project of the Belt and Road Initiative with far-reaching developmental impact.
Aurangzeb said CPEC Phase-II has now been formally launched following high-level engagements with Chinese President Xi Jinping and Premier Li Qiang earlier this year. He explained that the new phase is focused on monetising existing infrastructure and encouraging greater business-to-business cooperation, signalling a shift toward sustainable, private-sector-led growth.
Outlining Pakistan’s economic priorities, the finance minister identified agriculture, minerals and mining, artificial intelligence, and the digital economy as key sectors drawing Chinese investor interest. He emphasised that the next phase of cooperation places strong importance not only on capital inflows but also on knowledge transfer, technical expertise, and long-term capacity building.
Reaffirming Pakistan’s strategic outlook, Aurangzeb said the country remains committed to further strengthening its partnership with China. He noted that both sides are aligned on geopolitical considerations as well as a forward-looking economic agenda designed to guide cooperation over the medium to long term, reinforcing the all-weather strategic cooperative partnership between the two countries.