Business Desk 
Jan 13, 2025
As Pakistan's economic stability continues to reel with hindrances, keeping in view the so-far botched PIA privatisation and record high remittances, Federal Minister for Finance Muhammad Aurangzeb on Tuesday announced that the country is going to launch Panda Bonds this year in China to raise $200–250 million from investors.
The finance minister disclosed the issuance of Panda Ponds for 2025 while speaking at the Asian Financial Forum in Hong Kong, stating that the yuan-dominated bonds will be released to tap the Chinese market over the next six to nine months.
Long overdue, as dubbed by Aurangzeb, the rollout of Panda Bonds is said to be taken on the directives of China International Capital Corporation while also indicating Pakistan's first effort to attract Chinese investors.
Hopeful about further upgrades, he said Pakistan is now willing to penetrate the “single-B” category to be able to evaluate global bond markets. Previously estimated to be $300m in 2024, the country's target has now significantly been reduced to $200-250m, according to Bloomberg.
The initiative is said to be in line with conditions defined by the International Monetary Fund (IMF) under a $7 billion loan recently granted to Pakistan.
Given strict conditions, the country is obliged to increase taxes to qualify to secure the next $1bn tranche or else it might miss IMF’s fiscal targets for the year ending June 2025.
