Islamabad: Pakistan is set to enter the Chinese capital market for the first time with the issuance of a Green Panda Bond by the end of this month, Federal Minister for Finance Muhammad Aurangzeb said.
Speaking on the sidelines of the World Economic Forum (WEF) in Davos, the finance minister said the inaugural Panda bond will be structured as a green bond, underscoring Pakistan’s focus on sustainable and climate-resilient financing. He noted that Pakistan is among the countries most vulnerable to climate risks, making access to green financing increasingly important.
A Panda bond is a Renminbi-denominated bond issued by a non-Chinese entity in China’s domestic market, allowing issuers to tap into China’s investor base. The planned issuance will mark Pakistan’s first foray into the Chinese bond market.
Aurangzeb said the government aims to use the proceeds to support projects linked to climate resilience and sustainable development. He also highlighted the importance of fiscal discipline and productive use of debt, stressing that borrowing should be directed toward investments that support long-term economic stability rather than consumption.
The planned Green Panda Bond is part of broader efforts by the government to diversify financing sources, strengthen access to international capital markets, and align borrowing with sustainability goals.
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