Industry News

By Zafar Hussain

BEIJING, May 15 (China Economic Net): Pakistan marked a historic milestone in its financial diplomacy with the successful launch of its inaugural Panda Bond in Beijing on Thursday, opening a new chapter of economic cooperation between Pakistan and China.

Speaking at the issuance ceremony, Pakistan's Finance Minister, described the launch as "far more than a financial transaction," calling it a symbol of trust, innovation, and long-term partnership between the two countries. The bond issuance coincides with the 75th anniversary of diplomatic relations between Pakistan and China, underscoring the strength of their strategic and economic ties.

"Pakistan has successfully anchored a CNY 7.2 billion Panda Bond Programme.

The debut issuance of CNY 1.75 billion (equivalent to $250 million) experienced an overwhelmingly positive response and was oversubscribed, " he added.

The Finance Minister said the issuance reflects growing confidence among Chinese investors and institutions in Pakistan's economic direction and reform agenda. He noted that Pakistan has become the first South Asian country to issue a sovereign Panda Bond, a development he described as a "landmark achievement" for regional financial cooperation.

According to the minister, proceeds from the bond will support sustainable development projects in water resources, social infrastructure, and education sectors. He emphasized that the issuance aligns with Pakistan's broader vision of inclusive and sustainable economic growth.

The minister also highlighted improvements in Pakistan's macroeconomic indicators over the past three years, including strengthening economic stability and renewed reform momentum. He credited close cooperation with Chinese regulators, financial institutions, development partners, and market participants for making the transaction possible.

Chinese financial institutions, including Bank of China, ICBC, Standard Chartered Bank, and Hongta Securities, played key roles in the issuance process.