Pakistan plans to issue more Panda bonds, eyes Japanese market for borrowing: report

Finance Minister Muhammad Aurangzeb told Nikkei Asia that Pakistan is looking to go back to China's onshore debt market for additional yuan-based funding, as officials broaden funding channels. Business Recorder reported that the country is also weighing yen-denominated bonds in Japan. The initial panda issue, sized at 1.75 billion yuan ($261 million), came in mid-May under a 7.2-billion-yuan programme. Part of the issue was guaranteed by the Asian Development Bank and the Asian Infrastructure Investment Bank.

Aurangzeb said the panda bond would not be a one-off, describing China's market as ranking second in size and depth globally and saying Pakistan intends to return as a repeat issuer. On Japan, he said samurai bonds would make sense and should be studied further. The minister's remarks come while Pakistan operates under a $7 billion, 37-month Extended Fund Facility with the IMF, signed in 2024, which includes measures such as higher taxation of farm income.

Aurangzeb left for Bangkok to head Pakistan's delegation at the World Bank Group and IMF Annual Meetings 2026, which run from October 12 to 18. He is scheduled to hold more than 60 meetings with lenders, investors, banks and credit rating agencies. Business Recorder added that the trip coincides with Pakistan's move from stabilisation toward growth driven by investment and exports.