ISLAMABAD: Pakistan on Thursday raised $250 million through its inaugural Panda Bond in China’s capital market at an interest rate of 2.5 per cent with a three-year maturity, the Ministry of Finance (MoF) said.
“Pakistan has successfully completed its inaugural Panda Bond issuance today in China’s onshore capital market, marking the country’s first-ever entry into the world’s second-largest and deepest capital market,” the MoF said in a statement.
The inaugural Panda Bond is a three-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market, it added.
Finance Minister Muhammad Aurangzeb’s adviser Khurram Schehzad said the landmark Panda Bond issuance of RMB 1.75 billion (equivalent to $250m) attracted overwhelming investor demand of over RMB 8.8 billion, resulting in an oversubscription of more than five times.
Islamabad raises $250 million at 2.5pc; issuance of Panda bond oversubscribed fivefold
“Importantly, demand for the inaugural tranche alone exceeded Pakistan’s entire planned Panda Bond programme size of RMB 7.2 billion ($1bn equivalent), reflecting growing international investor confidence in Pakistan’s economic outlook and reform trajectory,” he said.
Mr Schehzad said the strong order book enabled highly competitive pricing, with a 2.5pc coupon, demonstrating the market’s positive assessment of Pakistan’s improving macroeconomic fundamentals, external stability, disciplined fiscal management and sovereign repayment capacity.
He said the historic issuance represented 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.”
The success of the much-delayed 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, he said, adding that Pakistan was quickly transitioning from stabilisation to strategy, from crisis management to market confidence, and from short-term financing pressures to long-term capital market access.
Published in Dawn, May 15th, 2026
