Beijing, China – Web Desk (May 16, 2026): Federal Minister for Finance Senator Muhammad Aurangzeb has stated that the launch of the Panda Bond marks the beginning of a new era of financial cooperation between Pakistan and China, according to a statement from the Ministry of Finance.
Speaking to China Global Television Network (CGTN) after the ceremony in Beijing, the minister said the successful issuance of Pakistan’s first Panda Bond has provided the country with access to China’s local capital market for the first time – the world’s second largest and deepest capital market.
Aurangzeb emphasized that the successful Panda Bond issuance is proof of growing confidence among Chinese financial institutions and global investors in Pakistan’s economic direction, reform agenda, and macroeconomic stability.
Boosting RMB Internationalization
The finance minister noted that the Panda Bond is not only significant for Pakistan’s financial strategy but will also promote the international use of China’s currency, the renminbi (RMB). He revealed that approximately one-quarter of trade between Pakistan and China is already conducted in RMB and Chinese yuan, reflecting deepening financial and economic linkages.
CPEC Phase 2 Focus
Aurangzeb explained that the first phase of the China-Pakistan Economic Corridor (CPEC) focused on infrastructure construction, while Phase 2 is concentrating on business cooperation, industrial partnerships, and deriving economic benefits from infrastructure.
He stated that Pakistan and China’s priorities are aligned in terms of mutual trade, investment, regional connectivity, and sustainable economic growth.
Economic Stability Amid Regional Tensions
Despite the current regional situation, the minister said Pakistan has effectively managed initial challenges related to procurement, delivery, and logistics while maintaining economic stability. Key economic indicators are moving in the right direction.
He reaffirmed the government’s commitment to reform programs, fiscal discipline, and investment-friendly policies, adding that ongoing reforms in the tax system, energy sector, state-owned enterprises, and digital governance are boosting investor confidence and further improving Pakistan’s economic outlook.
Bond Details
The total size of the Panda Bond program is 1billion(US),withaninitialissuanceequivalentto1billion(US),withaninitialissuanceequivalentto250 million. The issuance was supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). Representatives from China’s Ministry of Finance and the People’s Bank of China also attended the ceremony.
The finance minister thanked the Chinese government, financial institutions, regulatory authorities, and international development partners for their cooperation, expressing hope that this development will pave the way for further financial cooperation and future issuances.
