Pakistan 'plans' $750 mln financing via Panda bonds

ISLAMABAD: The Pakistan government has prepared a plan to raise $750 million through commercial financing and the issuance of Panda Bonds, ARY News reported on Tuesday, citing Finance Ministry sources.

The raised funds are expected to be utilized for the repayment of upcoming Eurobond maturities.

According to sources, the financing will be arranged through a consortium of banks.

The government is considering mobilizing funds through both Panda Bonds and commercial loans to meet external obligations.

Pakistan faces a $500 million Eurobond repayment due on September 30, followed by a $1 billion Eurobond maturity scheduled for April next year.

Sources added that these measures are part of the government’s broader strategy to ensure timely debt servicing while maintaining external financial stability.

Read more: Pakistan steps into Chinese debt market with Panda Bond plan

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.