ISLAMABAD/LAHORE: Pakistan raised 1.75 billion yuan ($250 million) through its inaugural Panda Bond issuance in China’s domestic capital market, with investor demand exceeding the offering size by more than five times, according to the top officials of Pakistan's finance ministry.
The three-year fixed-rate bond, Pakistan’s first sovereign yuan-denominated issuance in China’s onshore market, attracted orders worth more than 8.8 billion yuan ($1.26 billion), Adviser to the Finance Minister Khurram Schehzad said Thursday in a statement posted on X.
The bond carried a 2.5% coupon, which authorities said reflected investor confidence in Pakistan’s improving macroeconomic outlook, external-sector stability and fiscal management.
“The strong order book enabled highly competitive pricing [2.5% coupon], demonstrating the market’s positive assessment of Pakistan’s improving macroeconomic fundamentals, external stability, disciplined fiscal management, and sovereign repayment capacity,” Schehzad said.
Pakistani officials described the transaction as a milestone in the country’s efforts to diversify external financing sources and deepen financial cooperation with China.
According to the statement, demand for the inaugural issuance alone exceeded Pakistan’s broader Panda Bond program target of 7.2 billion yuan, or roughly $1 billion.
Finance Minister Muhammad Aurangzeb described the issuance as a “historic achievement,” saying the successful transaction reflected strengthening international confidence in Pakistan’s economic reforms and sovereign financial credibility.
“The Panda Bond issuance is a strong signal of Pakistan’s return to international financial markets,” Aurangzeb said, adding that the transaction opened “a new chapter” in Pakistan’s global economic and financial engagement.
Waqas Ghani, chief financial officer and head of research at JS Global Capital, told Pakistan TV Digital the issuance reflected “strong investor confidence that Pakistan’s fiscal reforms are structural, not temporary.”
“By accessing one of the world’s largest capital markets, Pakistan is moving beyond crisis-driven borrowing and toward stronger investment-grade credibility,” Ghani said.
He added that Pakistan was seeking to diversify external financing sources and expand access to international capital markets beyond conventional dollar-denominated borrowing.
Talking to Pakistan TV Digital, Rabia Ikram, assistant professor at Lahore School of Economics, said the issuance highlighted growing financial trust between Pakistan and China while reducing dependence on traditional Western lenders.
“It gives Pakistan access to a new market and reduces dependence on traditional Western lenders,” Ikram said. “At the same time, borrowing alone is never the solution unless it is backed by reforms and export growth.”
“Overall, it’s a smart financial move if managed carefully in the long run.”
Pakistan has sought to stabilize its economy following a prolonged balance-of-payments crisis that led the country to secure financial support from the International Monetary Fund and allied countries.
Officials say the Panda Bond issuance marks a broader effort to transition from short-term stabilization toward sustained access to international capital markets.
