Business Desk 
Sep 14, 2025
Pakistan is reportedly set to issue its inaugural tranche of Panda bonds before the end of the year, aiming to raise $250 million through yuan-denominated debt.
According to Bloomberg's report, the bonds will be privately placed on China’s national interbank market and offered to qualified institutional investors.
The bonds are expected to carry a coupon rate in the range of 3-4% per annum, with a three-year tenor. “The transaction is being structured with a consortium of financial advisers and underwriters like China International Capital Corporation Ltd. and Habib Bank Ltd.”
Notably, this move comes as different countries across emerging markets are increasingly turning to China for financing amid uncertainties over US trade policies and investor concerns about dollar holdings.
As a strategic partner in China's Belt and Road Initiative, Pakistan has secured substantial financial support from Beijing, with billions of dollars in loans allocated to bolster its economic development.
It is worth noting that the issuance of Panda bonds is part of Pakistan’s strategy to tap Chinese investors as the country rebuilds its economy, which faced a near-default in 2023.
In July, the Ministry of Finance outlined plans for a series of Panda bond issuances, with the first sale being followed by additional offerings as part of Pakistan's debt management strategy.
The inaugural Panda bond is anticipated to be launched this year, following the completion of documentation and required approvals, including credit guarantees from multilateral development partners.
The Finance Minister Muhammad Aurangzeb had said that the size of the Panda bond issuance would be around $300 million.
