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Pakistan Plans First Panda Bond Before Chinese New Year 2026

Islamabad seeks to tap China’s onshore market to diversify funding away from the dollar.

Overview

  • Finance Minister Muhammad Aurangzeb said Pakistan will issue a renminbi-denominated sovereign bond for Chinese domestic investors.
  • Authorities aim to complete the offering before the Feb. 17 Lunar New Year, with the Finance Division indicating a launch as early as January.
  • The initiative is designed to broaden external financing, complement eurobond and sukuk borrowing, and reduce exposure to U.S. dollar debt.
  • Officials link the plan to CPEC Phase‑II priorities, with potential proceeds directed to agriculture, minerals, artificial intelligence and the digital economy.
  • Pakistan Observer reported bids from five Chinese firms for a proposed $300 million tranche, a development not yet confirmed by officials.