FinMin hails Panda Bond sale as milestone

BEIJING: Federal Minister for Finance Muhammad Aurangzeb has said Pakistan’s first Panda Bond issuance represents a major development in the country’s financial landscape and signals a new phase in economic cooperation between Pakistan and China, according to an official statement issued on Saturday.

Speaking to China Global Television Network after the issuance ceremony in Beijing, Aurangzeb said the successful launch showed increasing confidence among Chinese institutions and international investors in Pakistan’s macroeconomic stability and reform programme.

He said the bond issuance also supports the internationalisation of the renminbi (RMB). Aurangzeb noted that nearly one-quarter of bilateral trade between Pakistan and China is already being settled in RMB and Chinese yuan.

Focus shifts in CPEC cooperation

Discussing the broader direction of Pakistan-China economic ties, the finance minister said the first phase of the China-Pakistan Economic Corridor largely concentrated on infrastructure development under the Belt and Road Initiative.

He said the second phase is increasingly focused on business-to-business engagement, industrial cooperation and the monetisation of infrastructure assets.

Reforms and regional challenges

Aurangzeb said Pakistan had managed the first-order effects of the regional conflict, including challenges related to procurement and logistics, while preserving macroeconomic stability and keeping key indicators on a positive course.

He also reiterated the government’s commitment to structural reforms, fiscal discipline and policies aimed at encouraging investment.

According to the official statement, the minister said reforms under way in taxation, the energy sector, state-owned enterprises and digital governance are helping strengthen investor confidence.

The statement said Aurangzeb linked the bond issuance to broader efforts to deepen financial and economic engagement with China, while also presenting it as part of Pakistan’s wider reform and stabilisation agenda.

He said the development marked an important step for Pakistan’s financial sector and underscored the government’s intention to continue pursuing reforms designed to improve economic fundamentals and attract investment.

The minister’s remarks came after the issuance ceremony in Beijing, where he highlighted both the significance of the bond sale and the evolving nature of Pakistan-China economic cooperation.