Ministry of Finance, Government of Pakistan@Financegovpk
Finance Minister Highlights Historic Pakistan-China Financial Cooperation at Inaugural Panda Bond Issuance Ceremony
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, today addressed the inaugural Panda Bond Issuance Ceremony held at the Embassy of Pakistan in Beijing, describing the successful debut issuance of Pakistan’s first-ever Panda Bond as a historic milestone in the country’s economic and financial engagement with China and the international capital markets.
Addressing representatives of the Government of China, multilateral development banks, rating agencies, financial institutions, investors, and distinguished guests, the Finance Minister said the successful issuance reflected trust, partnership, innovation, financial collaboration, and a shared commitment to sustainable development and regional connectivity.
The Finance Minister stated that the occasion carried special significance as Pakistan and China celebrate 75 years of diplomatic relations founded on mutual respect, strategic trust, and unwavering support for each other’s progress. He noted that the Panda Bond issuance demonstrated the growing maturity of bilateral economic cooperation and the confidence of Chinese institutions and investors in Pakistan’s economic direction. Pakistan, he added, is proud to become the first Panda Bond issuer from South Asia.
Senator Muhammad Aurangzeb informed participants that Pakistan had successfully established a CNY 7.2 billion Panda Bond Programme after two years of extensive preparation and coordination with Chinese regulators, development partners, advisors, and market participants. He noted that the debut issuance of CNY 1.75 billion received an overwhelmingly positive response and was oversubscribed, reflecting strong investor confidence in Pakistan’s economic outlook and reform agenda.
The Finance Minister appreciated the leadership and support provided by China International Capital Corporation (CICC) as lead underwriter, alongside Bank of China, Standard Chartered Bank, and Hongta Securities as joint lead underwriters as well as HBL as financial advisor. He also expressed gratitude to the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) for their credit-enhancement guarantees, which helped facilitate Pakistan’s successful entry into the Chinese onshore bond market.
Highlighting the sustainable dimension of the issuance, the Finance Minister stated that this was Pakistan’s first Sustainable Panda Bond, with proceeds earmarked for projects in the water, energy, and health sector underscoring the Government’s commitment to inclusive and sustainable growth.
Speaking on Pakistan’s economic progress, Senator Muhammad Aurangzeb said that the country’s economy was experiencing renewed stability, disciplined reforms, and forward-looking transformation. He highlighted improvements in macroeconomic indicators, including stronger GDP growth, sharply reduced inflation, improved foreign exchange reserves, fiscal consolidation, and a stabilised external sector supported by resilient exports and robust remittance inflows.
The Finance Minister further noted that the Government was advancing tax reforms through digitalisation and expansion of the tax base, implementing energy sector reforms to address circular debt and improve efficiency, and pursuing state-owned enterprise reforms through restructuring and privatisation initiatives. He added that Pakistan’s investment climate was improving through regulatory simplification, digital governance, and targeted sectoral reforms.
He reaffirmed Pakistan’s strong commitment to the IMF programme, stating that adherence to the reform agenda had strengthened macroeconomic foundations and reinforced market confidence in the country’s economy.
The Finance Minister expressed sincere appreciation to the Government of the People’s Republic of China, particularly the Ministry of Finance of China, the People’s Bank of China, and NAFMII, for their invaluable support and facilitation throughout the process. He also acknowledged the contribution of CCXI, Fangda Partners, A&Q, the Ministry of Finance team, and the Embassy of Pakistan in Beijing.
Concluding his address, Senator Muhammad Aurangzeb stated that the successful issuance marked not the end, but the beginning of a long-term partnership between Pakistan and the Chinese capital market. He expressed confidence that the establishment of the CNY 7.2 billion programme would provide Pakistan with a strong platform for future issuances and further deepen financial connectivity and sustainable economic cooperation between Pakistan and China.
