Islamabad, Pakistan – Web Desk: Pakistan’s plan to raise $250 million through its first-ever Panda bond issuance in the Chinese market has been stalled due to legal, administrative, and internal government hurdles, according to official sources.
The delay stems from disputes over project locations selected for funding, including the $760 million Jinnah Medical Complex, where land ownership claims emerged after the project’s launch. The site was initially allocated in Islamabad’s H-16 sector but was later shifted to H-11 following ownership disputes.
Due to Pakistan’s weak sovereign credit rating, the government secured credit guarantees from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). However, these institutions imposed conditions that the funds must be used exclusively for environmentally sustainable and green projects.
Sources said objections were also raised over a telemetry project in Azad Kashmir, which was removed from the list after concerns linked to territorial disputes, as international financial institutions restrict funding in contested regions.
Of the total $250 million, about $152 million was earmarked for two projects, including $76.5 million for real-time water discharge monitoring at 26 Indus Basin sites and $76 million for the Jinnah Medical Complex.
Officials also reported internal disagreements within the Ministry of Finance over loan agreements, underwriters, and the appointment of Chinese legal advisers, citing insufficient consultation with bureaucracy.
The government is now exploring alternative financing options and is negotiating additional foreign loans, including a $600 million facility from a British bank, sources said.
