Islamabad, March 26, 2025 – Pakistan is preparing to enter China’s robust capital market by issuing Panda Bonds in Chinese yuan this year, according to Federal Minister for Finance, Senator Muhammad Aurangzeb.
The move aims to strengthen economic ties between Pakistan and China while diversifying Pakistan’s sources of foreign capital.
Speaking to Chinese media outlets, including CGTN English and China Daily, Aurangzeb stated that Pakistan has previously issued bonds denominated in US dollars and euros. However, considering China’s significant role in the global financial landscape, Pakistan now seeks to leverage the deep and dynamic Chinese capital markets. Aurangzeb emphasized that this step would enhance financial cooperation between the two nations and reflect China’s growing influence in Pakistan’s financial and economic transformation.
Aurangzeb, who is currently visiting China to participate in the Boao Forum for Asia Annual Conference 2025, expressed gratitude for China’s unwavering support, referring to Pakistan and China as “iron brothers” and strategic allies. He underscored that the issuance of Panda Bonds would not only provide Pakistan with a new financing channel but also reinforce the economic integration of both countries.
Highlighting China’s commitment to opening its markets to foreign investment, Aurangzeb noted that Pakistan stands to gain significantly by positioning itself as a hub for export-oriented industries, particularly for Chinese companies looking to expand their operations. He praised the progress made under the China-Pakistan Economic Corridor (CPEC), particularly in infrastructure development, which has facilitated enhanced trade and investment opportunities within Pakistan.
The finance minister stressed the importance of maximizing financial benefits from Pakistan’s existing infrastructure, encouraging Chinese enterprises to invest and expand in the country. He reiterated Pakistan’s commitment to strengthening regional trade by improving connectivity through enhanced road and rail networks. Pakistan’s strategic location, coupled with its low-cost labor, presents an attractive opportunity for Chinese industries seeking efficient production bases.
During his visit, Aurangzeb also engaged with Chinese financial institutions, studying their digital transformation strategies. He highlighted Pakistan’s interest in learning from China’s experience in digital banking and financial inclusion, emphasizing that such advancements could revolutionize Pakistan’s financial sector.
Aurangzeb further pointed out that Pakistan and China could deepen their collaboration in emerging sectors, including financial technology, agriculture, and drone technology. He stressed that such cooperation would not only boost economic growth but also strengthen the long-term partnership between the two nations.