Pakistan launched its first-ever Pakistan Panda Bond in China’s onshore capital market on Thursday, marking a major step in financial cooperation between the two countries. The three-year fixed-rate bond became Pakistan’s first sovereign RMB-denominated issuance in the Chinese market.
According to officials, the Pakistan Panda Bond was issued with a value of RMB 1.75 billion, equal to around $250 million. The bond received an overwhelming response from investors, with total demand crossing RMB 8.8 billion, nearly five times higher than the offered amount.
Officials said the strong response reflects growing investor confidence in Pakistan’s improving economic conditions and reform programme. The high demand also helped Pakistan secure competitive pricing with a 2.5 percent coupon rate.
The development came shortly after Finance Minister Muhammad Aurangzeb visited China to attend the issuance ceremony. Adviser to the Finance Minister Khurram Schehzad described the launch as a landmark achievement for Pakistan’s economy.
He said investor demand for the first tranche alone exceeded the country’s planned Panda Bond programme worth RMB 7.2 billion, or nearly $1 billion. Officials believe this shows increasing international trust in Pakistan’s fiscal management, debt repayment capacity, and economic stability.
Pakistan recently remained active in global financial markets. The country raised $750 million through Eurobonds and secured additional financial support from Saudi Arabia, the United Arab Emirates, and the International Monetary Fund.
Economic experts see the Pakistan Panda Bond as more than a financing move. They believe it opens the door for deeper access to China’s financial markets and strengthens long-term Pakistan-China economic ties.
Officials added that the successful issuance sends a positive signal to global investors about Pakistan’s economic recovery and commitment to sustainable growth.
