Pakistan, May 17 — Senator Muhammad Aurangzeb, the Federal Minister for Finance and Revenue, stated that the launch of Pakistan’s first Panda Bond represents a significant milestone in the nation’s financial sector, heralding a new era in Pakistan-China economic collaboration by allowing Pakistan to tap into the world’s second-largest and second-deepest capital market for the first time.
During an interview with China Global Television Network (CGTN) after the official Panda Bond Issuance Ceremony held in Beijing, the Finance Minister mentioned that the successful issuance indicates the increasing confidence of Chinese institutions and international investors in Pakistan’s macroeconomic stability, reform initiatives, and economic strategy, according to a statement released here on Saturday.
Senator Muhammad Aurangzeb stated that the Panda Bond issue holds importance for Pakistan’s financial approach and also aids in the global recognition of the Renminbi (RMB).
He pointed out that almost a quarter of the bilateral trade between Pakistan and China is already being conducted in RMB and Chinese Yuan (CNY), emphasizing the growing financial integration and expanding economic relationship between the two nations. Speaking about the overall direction of Pakistan-China economic cooperation, the Finance Minister noted that although the first phase of the China-Pakistan Economic Corridor (CPEC) mainly concentrated on infrastructure development as part of the Belt and Road Initiative (BRI), the second phase is now more focused on business-to-business partnerships, industrial collaboration, and the monetization of infrastructure assets.
He mentioned that the strategic goals of Pakistan and China continue to be strongly in sync when it comes to advancing connectivity, commerce, investment, and long-term economic development.
The Minister of Finance added that Pakistan has effectively handled the immediate effects of the ongoing regional conflict, such as issues related to purchasing and transportation, while keeping macroeconomic stability and ensuring that important economic measures remain on a positive trajectory.
Senator Muhammad Aurangzeb reiterated the Government’s dedication to structural changes, financial responsibility, and policies that encourage investment, all designed to foster sustained and inclusive economic development. He highlighted that current reforms in taxation, energy, state-owned enterprises, and digital administration are boosting investor trust and enhancing Pakistan’s economic prospects. The Finance Minister joined the interview after the official event celebrating Pakistan’s first-ever Panda Bond release in Beijing on Friday. This significant issuance allows Pakistan to tap into China’s domestic capital market for the first time and marks a key achievement in the nation’s economic diplomacy and financial diversification initiatives.
The total Panda Bond Program is worth US$1 billion, with the first issuance equivalent to US$250 million. This offering is backed by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). Officials from China’s Ministry of Finance and the People’s Bank of China were present at the event. Senator Muhammad Aurangzeb thanked the Government of China, Chinese regulators, financial institutions, and multilateral development partners for their support and collaboration in helping Pakistan successfully enter the Chinese onshore bond market.
He conveyed assurance that the successful launch would create opportunities for future sovereign offerings and enhanced financial integration between Pakistan and China.
