Pakistan to Issue $1 Billion Panda Bonds in Chinese Market
ISLAMABAD: Pakistan has decided to issue Panda Bonds worth $1 billion in the Chinese market, according to sources in the Ministry of Finance.
The bonds will be launched in three phases between the current fiscal year and 2028. In the first phase, Panda Bonds valued at $250 million will be issued, followed by $750 million in the second and third phases. This reflects a shift from the earlier plan of issuing only $250 million.
Financial Strategy
The Ministry of Finance is also working on reducing the issuance of floating-rate and short-term Treasury Bills (T-Bills) to diversify funding sources and strengthen long-term fiscal stability.
Significant progress on the Panda Bond program is expected during Prime Minister Shehbaz Sharif’s upcoming visit to China, scheduled for next month. The Finance Minister is also expected to accompany him.
Growth Outlook
Alongside this initiative, the Ministry has projected a notable increase in Pakistan’s GDP over the next three years. By 2028, the GDP is expected to grow from Rs. 114 trillion to Rs. 163 trillion, reflecting an increase of Rs. 48 trillion.
