Finance Minister Muhammad Aurangzeb described Pakistan’s panda bond issuance as a “major milestone” in financial cooperation with China, saying it marks a new era of economic ties and reflects international confidence in Pakistan’s reform agenda.
ISLAMABAD: Finance Minister Muhammad Aurangzeb on Saturday described the issuance of the country’s panda bond as a “major milestone” in financial cooperation with China, saying it marks the beginning of a new phase in bilateral economic ties.
Access to World’s Second-Largest Capital Market
In an interview with China Global Television Network (CGTN), Aurangzeb said that the panda bond gives Pakistan access to the world’s second-largest capital market for the first time. He said that the successful issuance reflected international confidence in Pakistan’s economic direction and reform agenda.
“The panda bond issuance is a key milestone and the beginning of a new era of financial cooperation between Pakistan and China,” Aurangzeb said.
Deepening Financial Integration
He said nearly one-quarter of trade between Pakistan and China is already being conducted in Chinese yuan and renminbi, underscoring deepening financial integration between the two countries. Aurangzeb said the second phase of the China-Pakistan Economic Corridor (CPEC) focuses on business cooperation, industrial partnerships, and broader economic benefits.
He added that Pakistan and China’s priorities were aligned in areas of trade expansion, investment, and sustainable economic growth.
Economic Stability and Reforms
Despite economic challenges, key macroeconomic indicators were moving in the right direction and stability had been maintained, he said. The finance minister said that ongoing reforms in taxation, energy, and digital governance were helping improve investor confidence and strengthen economic fundamentals.
Strategic Significance
The panda bond, a renminbi-denominated bond issued in China’s domestic capital market, represents a significant diversification of Pakistan’s funding sources beyond traditional Western markets. Analysts view the successful issuance as a vote of confidence in Pakistan’s economic trajectory and a testament to the growing financial partnership between the two all-weather allies. The development is expected to pave the way for deeper capital market integration and increased Chinese investment in Pakistan’s infrastructure and industrial sectors under CPEC’s second phase.
