Federal Minister for Finance Senator Muhammad Aurangzeb has revealed Pakistan’s intention to issue Panda Bonds in Chinese yuan this year, signaling a move to diversify its funding sources and strengthen financial ties with China.
Speaking to Chinese media outlets, including CGTN English and China Daily, Aurangzeb, who is visiting China to participate in the Boao Forum for Asia Annual Conference 2025, emphasised the potential benefits of accessing Beijing’s vast capital market.
Pakistan has previously issued bonds in US dollars and Euros. Now is the time to benefit from the Chinese capital markets, Aurangzeb stated, highlighting the nation’s desire to expand its financial horizons.
The issuance of Panda Bonds will connect Pakistan’s capital markets with China and reflect Beijing’s important role in Islamabad’s digital transformation, he said.
He thanked China for its consistent support, referring to Pakistan and China as “iron brothers” and strategic partners.
He praised China’s efforts to open up its economy and markets, highlighting the significant role of foreign companies and firms in China’s exports.
Additionally, Aurangzeb emphasised Pakistan’s desire to become a hub for the transfer of export-oriented facilities and services from foreign, especially Chinese, companies.
He commended the construction of communication infrastructure, roads, and ports in Pakistan under the China-Pakistan Economic Corridor (CPEC) project.
Aurangzeb stressed the need to promote financial benefits from the infrastructure built in Pakistan and to enable Chinese industries to benefit from this infrastructure.
He reiterated Pakistan’s commitment to strengthening regional trade and road and rail links with neighboring countries.
China’s export sector and companies can benefit from Pakistan’s existing infrastructure and low-cost labour.
Aurangzeb also studied Chinese banks and their digital transformation, emphasising that Pakistan can learn from China’s experiences, particularly in improving financial inclusion through digital solutions.
The finance minister also highlighted the importance of bilateral cooperation in areas such as financial technology, agriculture, drone technology, and other key sectors.
