Pakistan plans to raise more funds from China’s onshore debt markets after successfully launching its first yuan denominated panda bond, Finance Minister Muhammad Aurangzeb said, reported Bloomberg.
The South Asian country’s debut panda bond issuance was oversubscribed by more than five times, reflecting strong investor appetite for the offering.
Pakistan raised $258 million through the debt sale, which officials described as the country’s cheapest foreign currency bond issuance so far.
Speaking in an interview, Aurangzeb said the government viewed the transaction as part of a broader funding strategy rather than a one time move.
“We are very clear that this is not a single event,” the finance minister said. He added that the overall panda bond program size stands at $1 billion and that Pakistan plans to proceed with additional renminbi denominated issuances for the next tranche.
Pakistan has returned to international debt markets this year after a prolonged absence linked to the country’s economic crisis and near default situation in 2023.
Last month, Pakistan also raised $500 million through a private placement transaction, marking the country’s first international market borrowing in four years.
The government has undertaken a series of economic reforms under International Monetary Fund programs aimed at stabilizing the economy, improving fiscal management, and restoring investor confidence.
