Islamabad: Pakistan is set to issue its inaugural Panda Bond worth USD 250 million in January, marking the first tranche of its planned USD 1 billion Panda Bond programme. Finance Minister Senator Muhammad Aurangzeb chaired a meeting on Friday to review the progress of the issuance, which is expected to proceed after final regulatory approvals from Chinese authorities.
During the meeting, the Finance Ministry’s Debt Management Office updated officials on the status of approvals, investor engagement, and regulatory processes. Reports indicate strong interest from Chinese institutional investors, with positive feedback from a diversified investor base.
The Panda Bond is seen as a strategic move to diversify Pakistan’s funding sources and support prudent debt management goals. The Finance Minister highlighted that the issuance aligns with the government’s broader strategy to enhance debt sustainability and access international capital markets.
Investor sentiment has been bolstered by Pakistan’s macroeconomic stabilization and ongoing policy reforms, providing a favorable medium-term outlook that supports the bond’s appeal.
Regulatory approvals for the inaugural tranche are expected by early January, paving the way for the launch. Preparations for subsequent tranches under the Panda Series-II are already underway, with initial outreach to financial institutions ongoing. Pricing for future tranches will be determined based on prevailing market conditions.
The Finance Minister expressed satisfaction with the progress of the programme and reiterated the government’s commitment to market-based financing as a means to strengthen Pakistan’s financial position and attract international investment.
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