Pakistan is poised to become the latest partner in a China-centred trading network, known as the Belt and Road Initiative, to sell \u201cpanda bonds\u201d.<\/p>\n
Islamabad seeks to raise as much as US$250 million through its first-ever sale of the bonds \u2013 yuan-denominated debt instruments sold by foreign entities in mainland China\u2019s onshore market \u2013 as early as this week.<\/p>\n
Finance Minister Muhammad Aurangzeb confirmed on Saturday that Islamabad was preparing to access Chinese capital markets with the sale \u2013 the first tranche of a broader US$1 billion programme that Islamabad has been pursuing since at least December.<\/p>\n
The three-year bonds, focused on sustainable development, will carry guarantees from the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank covering 95 per cent of the debt issuance, according to Bloomberg.<\/p>\n
The planned deal comes as Pakistan steps up its return to international capital markets following years of financial instability. Aurangzeb said the country successfully raised US$750 million in April through the sale of Eurobonds \u2013 international debt typically priced in US dollars, despite the name. That marked Islamabad\u2019s first international bond sale in four years.<\/p>\n
The panda bonds would add a yuan-denominated funding source to that effort, allowing the nation to benefit from lower Chinese interest rates compared with the higher costs of borrowing in US dollars.<\/p>\n
The structure mirrors a model Aurangzeb flagged in early 2025, when he said that Islamabad would replicate Egypt\u2019s AIIB-backed credit enhancement to access China\u2019s local capital markets. He described the move as \u201cabsolutely critical\u201d for Pakistan in efforts to diversify its funding base. Pakistan has faced persistent debt troubles in recent years, receiving a US$7 billion International Monetary Fund bailout in 2024 after being pushed to the brink of default in 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"Pakistan is poised to become the latest partner in a China-centred trading network, known as the Belt and…\n","protected":false},"author":3,"featured_media":790303,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[322780,322781,128462,3638,64,74,79,9249,322782,2850,66422,9996,32300,3775,24958,123,14002,32473,67,132,68],"class_list":{"0":"post-790302","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-aiib","9":"tag-asian-development-bank","10":"tag-belt-and-road-initiative","11":"tag-bloomberg","12":"tag-business","13":"tag-china","14":"tag-economy","15":"tag-egypt","16":"tag-eurobond","17":"tag-hungary","18":"tag-imf","19":"tag-indonesia","20":"tag-kazakhstan","21":"tag-pakistan","22":"tag-philippines","23":"tag-poland","24":"tag-south-china-morning-post","25":"tag-uae","26":"tag-united-states","27":"tag-unitedstates","28":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116559780896343327","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/790302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=790302"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/790302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/790303"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=790302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=790302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=790302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}