Business Recorder
ISLAMABAD: Pakistan has completed its inaugural Panda Bond issuance on Thursday in China’s onshore capital market - marking the country’s first-ever entry into the world’s second-largest and deepest capital market. Advisor to Finance Minister Khurram Schehzad announced this on X, formerly known as Twitter. The inaugural Panda Bond is a 3-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market. He further said that the landmark Panda Bond issuance of RMB 1.75 billion (equivalent to USD250 million) attracted overwhelming investor demand of over RMB 8.8 billion (approximately USD1.26 billion), resulting in an oversubscription of more than 5 times. Importantly, demand for the inaugural tranche alone exceeded Pakistan’s entire planned Panda Bond programme size of RMB 7.2 billion (USD1 billion equivalent) - a powerful reflection of growing international investor confidence in Pakistan’s economic outlook and reform trajectory, he added. The strong order book enabled highly competitive pricing (2.5% coupon), demonstrating the market’s positive assessment of Pakistan’s improving macroeconomic fundamentals, external stability, disciplined fiscal management, and sovereign repayment capacity. This historic issuance far more than a financing transaction. It marks Pakistan’s strategic entry into China’s capital market, diversification of the country’s investor base, strengthening of Pakistan-China financial cooperation, and Pakistan’s structured return to international capital markets from a position of improving stability and credibility, he added. The advisor further said that the success of the Panda Bond sends a powerful signal to global investors that Pakistan’s economic recovery is gaining international recognition. It reflects confidence in the country’s reform agenda, improving fiscal and external indicators, successful debt management, and commitment to sustainable growth. Copyright Business Recorder, 2026
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