Pakistan plans more panda bonds, explores yen-denominated borrowing in Japan: report

Pakistan intends to borrow more via yuan-denominated panda bonds sold in China and is looking at yen-denominated samurai bonds in Japan, Finance Minister Muhammad Aurangzeb told Nikkei Asia, according to Profit by Pakistan Today. The aim is to diversify the country's borrowing sources. Aurangzeb said the government wants to be a recurring borrower on the Chinese onshore market after its May 2026 debut in that segment.

The initial panda bond brought in 1.75 billion yuan ($261 million) under a 7.2 billion yuan programme, backed in part by guarantees from the ADB and AIIB. The minister said the government does not regard that deal as a one-off and plans further borrowing from China. He called China the second-biggest market globally and among the deepest, making it a key source of financing.

On Japan, Aurangzeb said no samurai bond transaction has been finalised yet and more preparatory work is needed before proceeding. Samurai bonds are yen-denominated debt issued inside Japan by overseas governments, firms or global bodies. The timing reflects Pakistan's effort to widen financing channels after an unstable economic phase.