ISLAMABAD—Pakistan is considering issuing Panda Bonds in Chinese Yuan for the first time this year, marking a significant step toward leveraging China’s growing capital markets. Federal Minister for Finance, Senator Muhammad Aurangzeb, highlighted this possibility during a recent interview with Chinese media outlets such as CGTN English and China Daily.
According to Aurangzeb, Pakistan has historically issued bonds in US dollars and Euros, but with China’s financial markets expanding, the time is ripe to diversify and benefit from this strategic move. He emphasized that issuing Panda Bonds will strengthen financial ties between Pakistan and China, further solidifying the partnership between the two nations, which he described as "iron brothers" and strategic allies.
The announcement was made during Aurangzeb’s participation in the Boao Forum for Asia Annual Conference 2025, where he praised China’s open market policies and the role of foreign companies in its booming export industry. Aurangzeb expressed Pakistan’s intent to position itself as a key hub for export-driven industries, particularly those from China. He underscored the importance of the China-Pakistan Economic Corridor (CPEC) in facilitating these goals through the ongoing development of roads, ports, and other vital infrastructure.
The finance minister emphasized the potential financial benefits that Chinese industries could reap by utilizing Pakistan’s cost-effective labor and infrastructure. He pointed out that stronger regional trade, along with enhanced road and rail links, could help achieve these objectives.
During the interview, Aurangzeb also focused on Pakistan’s keen interest in China’s digital transformation, particularly in the financial sector. He noted that Pakistan could greatly benefit from China's experience in improving financial inclusion through digital technologies, which would drive greater economic participation across the country.
The minister stressed the need for deepening bilateral cooperation in key areas such as fintech, agriculture, and drone technology, seeing them as crucial avenues for enhancing Pakistan’s economic growth and development.
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