Pakistan Launches $1 Billion Panda Bond Program in China

Pakistan has introduced a $1 billion Panda Bond program in China as part of its plan to explore new financing options. The decision was confirmed on Sunday, August 18, 2025, marking a major step to strengthen Pakistan’s position in international capital markets.

First Tranche in 2026

Officials said the first tranche of Panda Bonds, worth $200–250 million, will be issued in the fiscal year 2026. More issuances are expected later. The government believes this program will help raise funds on better terms and create stronger financial links with Chinese markets.

Diversifying Funding Sources

For many years, Pakistan has mainly depended on multilateral and bilateral loans that usually come with softer repayment conditions. But now, the government plans to expand options by using Panda Bonds, Sustainable Bonds, and Eurobonds. Future issuances will depend on global interest rates and the country’s economic situation.

Sustainable Bonds in the Pipeline

Work is also moving forward on Pakistan’s first Sustainable Bonds. A Sustainable Financing Framework has already been prepared and only needs approval from the federal cabinet. Once approved, this framework will help guide Pakistan’s future issuances in line with international investor requirements.

Global Investor Attraction

The design of these bonds—including maturity schedules, repayment systems, and interest rate structures—will be carefully created to attract a wide range of international investors.

By launching Panda Bonds in China and preparing for Sustainable Bonds and Eurobonds, Pakistan aims to reduce its reliance on traditional lenders and create balanced financing opportunities for the future.