Pakistan is preparing to launch its first-ever Panda Bond in China’s capital market, a move aimed at diversifying external financing and deepening economic ties with China, Finance Minister Senator Muhammad Aurangzeb said on Tuesday.
Speaking in an interview with China Global Television Network, the finance minister said the planned Panda Bond issuance marks a new phase in the Pakistan-China economic partnership and reflects growing confidence in Pakistan’s economic direction.
He said China remains Pakistan’s largest trading partner, with bilateral trade approaching $17 billion in the first eight months of the year.
The relationship, he added, has evolved from infrastructure-led cooperation to a broader, market-driven partnership.
The minister said the China-Pakistan Economic Corridor has now entered its second phase, shifting focus from building roads, ports and power projects to monetising existing infrastructure through business-to-business cooperation and private sector investment.
Highlighting priority areas for future collaboration, Aurangzeb said agriculture, minerals and mining, artificial intelligence, and the digital economy are attracting strong Chinese interest.
He added that cooperation now goes beyond investment, with emphasis on skills development and technology transfer.
As part of this effort, thousands of Pakistani agriculture graduates are studying in Chinese universities to adopt modern farming practices, while Chinese technology firms such as Huawei are training Pakistani IT graduates to support digital transformation.
The finance minister said China has continued to support Pakistan during challenging economic periods, including through assistance linked to Pakistan’s IMF program.
He said the proposed Panda Bond issuance, expected ahead of the Chinese New Year, would allow Pakistan to tap into the world’s second-largest capital market and reduce reliance on dollar-based funding by complementing existing access to eurobond and sukuk markets.
Looking ahead, Aurangzeb said recent high-level engagements between the two countries have produced a clear economic roadmap that will guide cooperation in the coming years, reinforcing Pakistan and China’s long-term strategic and economic partnership.
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