Pakistan, China review Panda Bond success, eye more issuances

Mettis Global reported that Finance Minister Muhammad Aurangzeb and China's Finance Minister Lan Fo'an discussed deeper financial ties in Bangkok, Thailand, on the margins of the 2026 World Bank Group-IMF Annual Meetings. Beijing welcomed Pakistan's better economic footing and its renewed presence in global financial markets. Aurangzeb thanked China for its long-standing support during difficult economic periods.

The two ministers reviewed Pakistan's inaugural Panda Bond, which carried AIIB credit support, a competitively priced 2.5% coupon and robust investor appetite. Aurangzeb said Islamabad intends to remain a repeat sovereign issuer in the Chinese capital market. Further Panda Bond sales are planned under an approved RMB 7.2 billion programme, and Pakistan's return to the Eurobond market after four years was also on the agenda.

Both sides also turned to Pakistan's chairmanship of the Shanghai Cooperation Organisation, including preparations for the upcoming summit and a finance ministers' meeting in Islamabad that Lan Fo'an plans to attend. They exchanged views on a proposed SCO Development Bank, and China asked for Pakistan's active role in building consensus. Progress toward agreement on a route change for a China-Pakistan highway and cooperation on digital transformation and AI skills with Alibaba were also noted.