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Summary Pakistan successfully issues first Panda bond in China, securing oversubscribed bids with low interest rate, signaling investor confidence and diversification of financing sources.
BEIJING (Dunya News) – Pakistan has successfully entered China’s domestic capital market by issuing its first-ever Panda bond, marking a significant step in diversifying its financing sources.
Finance adviser Khurram Shehzad said the country raised 1.75 billion yuan, while receiving bids worth 8.8 billion yuan — nearly five times the offered amount.
He noted that the bond was issued at an attractive interest rate of 2.5 percent, reflecting strong confidence from global investors in Pakistan’s economic reforms.
The issuance allows Pakistan to access China’s vast financial market for the first time, one of the largest and most liquid capital markets in the world.
Officials described the development as a key milestone in the country’s financial strategy, aimed at broadening funding avenues and strengthening its presence in global financial markets.
The Panda bond programme has an overall size of $1 billion, with the initial tranche equivalent to $250 million.
The issuance is supported by Asian Development Bank and Asian Infrastructure Investment Bank, which is expected to further boost investor confidence.
Authorities say the move reflects Pakistan’s transition toward market-based financing and signals growing international trust in its economic stability and reform agenda.
