Pakistan is preparing to launch its first Panda Bond in the Chinese onshore bond market, targeting approximately $250 million in funding by mid-January 2026, officials familiar with the plan said.
The planned issuance is part of Pakistan’s broader effort to diversify its financing options and reduce reliance on traditional international capital markets. Panda Bonds are yuan-denominated debt instruments issued by foreign governments or entities in China’s domestic bond market.
Officials say the move reflects growing financial cooperation between Pakistan and China and is intended to attract long-term investors while managing currency and refinancing risks. The bond issuance is expected to follow regulatory approvals and market conditions at the time of launch.
Pakistan has increasingly explored alternative funding avenues amid global market volatility, with policymakers emphasising prudent debt management and diversified borrowing strategies to support fiscal stability.
