ISLAMABAD: Finance Minister Muhammad Aurangzeb on Saturday said Pakistan’s inaugural Panda Bond issuance marked a “transformational step” in the country’s financial landscape and opens a new chapter in Pakistan-China economic cooperation by giving Pakistan access to the world’s second-largest and second-deepest capital market for the first time.

In an interview with China Global Television Network following the official Panda Bond issuance ceremony in Beijing, Mr Aurangzeb said the successful issuance reflected the growing confidence of Chinese institutions and global investors in Pakistan’s macroeconomic stability, reform agenda and economic direction.

“Nearly one-quarter of bilateral trade between Pakistan and China is already being settled in RMB and Chinese Yuan (CNY),” he said, highlighting increasing financial integration and expanding economic partnership between the two countries.

Discussing broader Pak­ist­an-China economic coo­p­eration, Mr Aurangzeb said the first phase of the China-Pakistan Economic Corridor under the Belt and Road Initiative had largely focused on infrastructure development, while the second phase was increasingly centred on business-to-business collaboration, industrial cooperation and monetisation of infrastructure assets.

“The strategic priorities of Pakistan and China remain closely aligned in promoting connectivity, tra­de, investment, and sustainable economic gro­wth,” he said.

Mr Aurangzeb also said Pakistan had successfully managed the “first-order implications” of the prevailing regional conflict, including procurement and logistics challenges, while maintaining macroeconomic stability.

“Key economic indicators continue moving in the right direction,” he said.

He reaffirmed the government’s commitment to structural reforms, fiscal discipline and investment-friendly policies aimed at promoting long-term and inclusive economic growth.

“Ongoing reforms in taxation, energy, state-owned enterprises, and digital governance are strengthening investor confidence and improving Pakistan’s economic outlook,” he said.

Published in Dawn, May 17th, 2026