KARACHI – Adviser to Finance Minister Khurram Shehzad said that Pakistan has successfully launched its first-ever “Panda Bond” in the Chinese market.
Khurram Shehzad stated that Pakistan received offers worth 8.8 billion yuan against bonds valued at 1.75 billion yuan, reflecting demand nearly five times higher than the offered amount. He added that Pakistan secured the Panda Bond at an attractive interest rate of just 2.5 percent.
He said global investors have shown strong confidence in Pakistan’s economic reforms, adding that the country is moving from stability toward growth and entering a new phase of economic development.
For the first time, Pakistan is gaining access to China’s local capital market through the Panda Bond, which is considered one of the world’s largest and deepest financial markets.
The launch of the Panda Bond marks a significant step in Pakistan’s financial strategy, aimed at diversifying financing sources, strengthening investor confidence, and expanding the country’s presence in global financial markets.
Pakistan is now moving toward market-based financing alongside traditional funding sources. Officials said access to the Chinese capital market through the Panda Bond reflects Pakistan’s economic recovery and growing trust from international investors.
The overall size of the Panda Bond program has been set at $1 billion, while the initial issuance will be equivalent to $250 million. The issuance is being supported by the Asian Development Bank and the Asian Infrastructure Investment Bank, which is expected to further boost global investor confidence.
