Pakistan is set to issue $1 billion in Panda Bonds in the Chinese market, with the issuance planned over three phases: $250 million in the current fiscal year, and the remaining $750 million in subsequent phases through 2028. This strategy marks a shift from the initial plan to issue only $250 million, reflecting a more ambitious approach to external financing.
The Ministry of Finance’s decision to issue Panda Bonds aligns with its broader strategy to diversify borrowing instruments and reduce reliance on short-term Treasury Bills with floating interest rates. By tapping into the Chinese capital market, Pakistan aims to enhance financial stability and attract investment from Chinese institutional investors.
The Panda Bonds initiative is expected to gain momentum during Prime Minister Shehbaz Sharif’s upcoming visit to China, where discussions on economic cooperation are anticipated. Additionally, projections indicate that Pakistan’s GDP will grow from Rs. 114 trillion to Rs. 163 trillion by 2028, reflecting a substantial economic expansion.
