Beijing: Pakistan’s Finance Minister, Muhammad Aurangzeb, has hailed the successful debut issuance of the nation’s first Panda Bond as a historic milestone in its economic and financial engagement with China and the international capital markets. Speaking at the inaugural ceremony in Beijing, Aurangzeb highlighted the significance of this achievement, emphasizing its role in fostering trust, partnership, and regional connectivity between the two countries.

According to Radio Pakistan, the Panda Bond issuance comes as Pakistan and China celebrate 75 years of diplomatic relations. The Finance Minister noted that this financial endeavor demonstrates the maturity of bilateral economic cooperation and the confidence of Chinese institutions in Pakistan’s economic trajectory. Pakistan has become the first South Asian nation to issue a Panda Bond, establishing a 7.2 billion Chinese Yuan program after two years of preparation with Chinese regulators and market participants.

The debut issuance of 1.75 billion Chinese Yuan received a strong response, being oversubscribed and reflecting robust investor confidence. Aurangzeb expressed appreciation for the leadership of the China International Capital Corporation and support from institutions such as the Asian Infrastructure Investment Bank and the Asian Development Bank. He underscored the sustainable nature of the bond, aimed at funding projects in water, energy, and health sectors, aligning with the government’s commitment to sustainable growth.

Aurangzeb also addressed Pakistan’s broader economic progress, citing improvements in GDP growth, inflation reduction, and foreign exchange reserves. He detailed ongoing reforms in tax, energy, and state-owned enterprises, aiming to enhance the investment climate through regulatory simplification and digital governance. The Finance Minister affirmed Pakistan’s commitment to the IMF program, noting that adherence to reforms has fortified the country’s macroeconomic foundations.

Concluding his address, Aurangzeb emphasized that the Panda Bond issuance marks the beginning of a long-term partnership with the Chinese capital market, providing a platform for future financial connectivity and sustainable economic cooperation.