Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced that Pakistan is hopeful of launching its first Panda Bond before the Chinese New Year, calling it a milestone in the country’s external financing strategy.
According to sources, speaking in an interview with China Global Television Network (CGTN), the finance minister said that the issuance of the bond would give Pakistan access to the world’s second-largest capital market. This would help reduce excessive reliance on the US dollar and diversify funding sources, while complementing Pakistan’s existing access to the euro and sukuk markets.
He acknowledged that Pakistan had not fully capitalized on this opportunity in the past but said he is now very optimistic about investor interest in the Chinese market. A Panda Bond is a bond issued in Chinese currency (renminbi) by a non-Chinese entity or government in China’s domestic market to access local investors. It is noteworthy that the Chinese New Year, also known as the Spring Festival, will fall on February 17, 2026.
Calling China Pakistan’s largest trading partner, he said that bilateral trade between the two countries stood at nearly $17 billion during the first eight months of the year.
According to sources, Muhammad Aurangzeb emphasized that relations between the two countries have steadily strengthened over the decades. He said that China has stood by Pakistan on international forums and has played a key role in Pakistan’s economic development through the China-Pakistan Economic Corridor (CPEC), the flagship project of the Belt and Road Initiative.
The finance minister explained that while the first phase of CPEC focused on infrastructure such as roads, ports, and energy, the second phase has now formally begun. This phase aims to derive financial returns from existing infrastructure and promote business-to-business (B2B) cooperation to ensure sustainable growth.
He identified agriculture, minerals, artificial intelligence, and the digital economy as key sectors for Chinese investment, adding that this phase focuses not only on capital inflows but also on the transfer of technology and expertise.
Talking about global uncertainty and geopolitical tensions, the finance minister said that Pakistan’s priority is to further strengthen its long-standing partnership with China. He noted that China has provided strong support to Pakistan not only in trade but also during difficult economic conditions and throughout the IMF program.
