Pakistan is set to issue $1 billion worth of Panda Bonds in the Chinese market, marking a significant step in diversifying its external financing sources. The issuance will occur in three phases: $250 million in the current fiscal year, followed by two additional phases totaling $750 million by 2028. This decision expands upon the initial plan to issue only $250 million
The Ministry of Finance aims to reduce reliance on short-term Treasury Bills with floating interest rates by introducing longer-term borrowing instruments. This strategy aligns with Pakistan’s broader goal of stabilizing its debt profile and enhancing financial resilience.
The Panda Bonds initiative is expected to gain momentum during Prime Minister Shehbaz Sharif’s upcoming visit to China, where discussions on economic cooperation are anticipated. Additionally, projections indicate that Pakistan’s GDP will grow from Rs. 114 trillion to Rs. 163 trillion by 2028, reflecting a substantial economic expansion
