ISLAMABAD: Pakistan has successfully raised $250 million equivalent through its inaugural Panda bond issuance in China’s onshore capital market, marking its first entry into the renminbi-denominated sovereign bond segment and a major step in external financing diversification, according to Finance Ministry adviser Khurram Schehzad.
The three-year fixed-rate Panda bond was issued at a competitive 2.5 percent coupon rate, reflecting strong investor confidence despite global economic uncertainty. The issuance, valued at RMB 1.75 billion, highlights Pakistan’s strategy to tap alternative funding sources beyond traditional US dollar-based borrowing channels.
𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗲: 𝗣𝗮𝗸𝗶𝘀𝘁𝗮𝗻’𝘀 𝗜𝗻𝗮𝘂𝗴𝘂𝗿𝗮𝗹 𝗣𝗮𝗻𝗱𝗮 𝗕𝗼𝗻𝗱 𝗚𝗼𝗲𝘀 𝗧𝗵𝗿𝗼𝘂𝗴𝗵 - 𝗠𝗮𝗿𝗸𝘀 𝗛𝗶𝘀𝘁𝗼𝗿𝗶𝗰 𝗕𝗿𝗲𝗮𝗸𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗶𝗻 𝗚𝗹𝗼𝗯𝗮𝗹 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀
— Khurram Schehzad (@kschehzad) May 14, 2026
Pakistan has successfully completed its inaugural Panda Bond issuance… pic.twitter.com/l6vTwLGSxX
Official data shows the Panda bond attracted exceptional demand, with total bids exceeding RMB 8.8 billion (approximately $1.26 billion). This led to oversubscription of more than five times, indicating strong appetite from Chinese institutional investors and global market participants for Pakistan sovereign debt instruments.
The demand for this initial issuance alone surpassed the planned Panda bond programme size of RMB 7.2 billion, signaling robust market interest and confidence in Pakistan macroeconomic stability, fiscal discipline, and improving external sector indicators.
Government officials stated that the successful Panda bond issuance strengthens Pakistan China financial cooperation and deepens economic ties between the two countries. It also marks Pakistan’s gradual return to international capital markets with improved credibility, debt management capacity, and policy stability.
Experts believe that access to China capital markets will help Pakistan diversify its investor base, reduce reliance on expensive external debt, and improve long-term sovereign financing strategies. The move is also expected to ease pressure on foreign exchange reserves and support broader economic reform efforts.
The Finance Ministry said the issuance reflects growing international recognition of Pakistan economic recovery and reform agenda. It also signals improved investor trust in the country’s repayment capacity and financial governance framework.
Khurram Schehzad emphasized that the Panda bond success demonstrates confidence in Pakistan sovereign credit outlook and its ability to attract diversified global funding. He added that Pakistan plans to expand participation in international bond markets as part of its broader economic stabilization and growth strategy.
