Aurangzeb terms Panda Bond issuance historic milestone

Beijing: Finance Minister Muhammad Aurangzeb has described the successful debut issuance of Pakistan's first-ever Panda Bond as a historic milestone in the country's economic and financial engagement with China and international capital markets.

He was addressing the inaugural Panda Bond issuance ceremony in Beijing today.

The Finance Minister said the successful issuance reflected trust, partnership, innovation, financial collaboration and a shared commitment to sustainable development and regional connectivity.

He said the occasion carried special significance as Pakistan and China celebrate 75 years of diplomatic relations founded on mutual respect, strategic trust and unwavering support for each other's progress.

He noted that the Panda Bond issuance demonstrated the growing maturity of bilateral economic cooperation and the confidence of Chinese institutions and investors in Pakistan's economic direction. He added that Pakistan is proud to become the first Panda Bond issuer from South Asia.

Muhammad Aurangzeb highlighted that Pakistan has successfully established a 7.2 billion Chinese Yuan Panda Bond Programme after two years of extensive preparation and coordination with Chinese regulators, development partners, advisors, and market participants.

He noted that the debut issuance of 1.75 billion Chinese Yuan received an overwhelmingly positive response and was oversubscribed, reflecting strong investor confidence in Pakistan's economic outlook and reform agenda.

The Finance Minister appreciated the leadership and support provided by China International Capital Corporation as lead underwriter, alongside Bank of China, Standard Chartered Bank and Hongta Securities as joint lead underwriters as well as HBL as financial advisor.

He also expressed gratitude to the Asian Infrastructure Investment Bank and the Asian Development Bank for their credit-enhancement guarantees, which helped facilitate Pakistan's successful entry into the Chinese onshore bond market.

Highlighting the sustainable dimension of the issuance, the Finance Minister said this is Pakistan's first Sustainable Panda Bond, with proceeds earmarked for projects in the water, energy, and health sector underscoring the Government's commitment to inclusive and sustainable growth.

Speaking on Pakistan's economic progress, Muhammad Aurangzeb said the country's economy is experiencing renewed stability, disciplined reforms, and forward-looking transformation.

He highlighted improvements in macroeconomic indicators, including stronger GDP growth, sharply reduced inflation, improved foreign exchange reserves, fiscal consolidation, and a stabilized external sector supported by resilient exports and robust remittance inflows.

The Finance Minister further noted that the Government is advancing tax reforms through digitalization and expansion of the tax base, implementing energy sector reforms to address circular debt and improve efficiency, and pursuing state-owned enterprise reforms through restructuring and privatization initiatives. He added that Pakistan's investment climate is improving through regulatory simplification, digital governance, and targeted sectoral reforms.

He reaffirmed Pakistan's strong commitment to the IMF programme, stating that adherence to the reform agenda has strengthened macroeconomic foundations and reinforced market confidence in the country's economy.

Concluding his address, Muhammad Aurangzeb said the successful issuance marks not the end, but the beginning of a long-term partnership between Pakistan and the Chinese capital market.

He expressed confidence that the establishment of the 7.2 billion Chinese Yuan programme would provide Pakistan with a strong platform for future issuances and further deepen financial connectivity and sustainable economic cooperation between Pakistan and China.