Pakistan steps into Chinese debt market with Panda Bond plan

Pakistan has launched a non-deal roadshow in Beijing, China, from July 7 to 11, 2025, for the promotion of its imminent debut Panda Bond issuance.

According to economic advisor Khurram Shehzad, the roadshow centres on Pakistan’s macroeconomic forecast, debt restructuring, and the structure of the proposed Pakistan Panda Bond.

The non-deal investor roadshow is being led by the Ministry of Finance, which aims to collaborate with Chinese investors and financial institutions before the formal launch later this year.

Authorities are conducting technical meetings with underwriters, credit rating agencies, legal advisors, and potential guarantors.

Finance Minister Muhammad Aurangzeb earlier stated that the Pakistan Panda Bond will be settled in Chinese yuan and is likely to increase between $200 million and $300 million.

The issuance is being structured with support from multifaceted development institutions, including the Asian Infrastructure Investment Bank (AIIB), which may provide credit guarantees.

The Pakistan Panda Bond is a component of a wider strategy to expand funding sources and reduce dependence on dollar borrowing. It also aligns with Pakistan’s aim to progress its credit rating to single ‘B’ and deepen incorporation with China’s capital markets.

Muhammad Aurangzeb emphasised that the Chinese private sector and export industries should consider transferring production units to Pakistan, aligning the country as a regional export hub.

This corresponds to the second phase of the China-Pakistan Economic Corridor (CPEC), which will concentrate on special economic zones, agriculture, and information technology.

Safety upgrades are also ongoing to protect foreign investors and companies operating in Pakistan, reflecting the government’s commitment to creating a conducive investment environment.

The Pakistan Panda Bond roadshow has received strong initial interest, signalling investor confidence in Pakistan’s reform trajectory and its growing credibility in international capital markets.

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