Panda Bonds postponed for fourth time as Finance Ministry misses deadline
Business
The initial plan to issue $250 million in Panda Bonds was formulated during the previous fiscal year.
ISLAMABAD (Mudassar Ali Rana) - The government has once again postponed the issuance of $250 million worth of Panda Bonds, marking the fourth revision to the plan during the current fiscal year.
According to sources, the bonds were scheduled to be launched in early February. However, the issuance could not proceed as the Finance Ministry’s preparatory work remains incomplete.
Officials at the Finance Ministry remain optimistic that the bonds will be floated next month, though a final date has yet to be announced.
The government is also preparing for the repayment of $1.2 billion in Eurobonds due in April 2026, and financial arrangements are currently being finalized to meet the obligation.
Sources further revealed that groundwork for the Panda Bonds issuance is still pending. The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) are expected to provide guarantees of up to 95 percent for the bond issuance.
The initial plan to issue $250 million in Panda Bonds was formulated during the previous fiscal year but has now been revised for the fourth time.
Pakistan is set to enter China’s interbank bond market for the first time in its history through this issuance, aiming to raise the equivalent of $250 million in Chinese yuan.
The Panda Bonds will have a three-year maturity period, with a fixed interest rate expected to remain in the single-digit range.
