Pakistan backs proposed SCO Development Bank, plans further Panda Bond issuances in China

Pakistan has renewed its backing for the planned Shanghai Cooperation Organisation Development Bank, while Finance Minister Muhammad Aurangzeb outlined plans to keep tapping China's capital market through repeat sovereign bond sales. The remarks came during talks with Chinese Finance Minister Lan Fo'an in Bangkok, Thailand, where the World Bank Group and IMF Annual Meetings 2026 were being held. The Chinese side asked Pakistan to take an active part in ongoing consultations and help build consensus among member states on setting up the institution.

Profit by Pakistan Today reported that the ministers also reviewed plans for more Panda Bond issuances under an RMB 7.2 billion programme that has already been approved. The debut issue drew strong investor demand at a 2.5% coupon after the Asian Infrastructure Investment Bank (AIIB) provided credit enhancement and regulatory backing. The report added that the AIIB will continue supporting the programme as Pakistan seeks a sustained presence in the Chinese market.

Other items on the agenda included Pakistan's re-entry into the Eurobond market after four years, and Lan Fo'an welcomed the country's better economic footing. The talks also covered the SCO Finance Ministers' Meeting planned for Islamabad, which the Chinese minister said he intends to attend, and progress toward an agreement on changes to a highway route. Aurangzeb further briefed Lan Fo'an on Pakistan's work with Alibaba on digital transformation and AI skills.