Pakistan plans to issue more Panda bonds, eyes Japanese market for borrowing
As the government seeks to diversify its funding sources, Pakistan plans to return to China’s domestic bond market for further yuan-denominated borrowing and is exploring the possibility of issuing yen-denominated bonds in Japan, Finance Minister Muhammad Aurangzeb said in an interview to Nikkie Asia . Pakistan issued its first panda bond worth 1.75 billion yuan ($261 million) in mid-May under a…
Pakistan plans to issue additional Panda bonds and explore the Japanese market for borrowing, Finance Minister Muhammad Aurangzeb revealed in an interview with Nikkie Asia. The government is diversifying its funding sources after recovering from severe economic turmoil caused by the COVID-19 pandemic. The government signed an IMF loan program worth $7 billion in 2024, which includes measures such as raising tax revenue on farm income.
Aurangzeb also expressed interest in issuing yen-denominated bonds in Japan, known as samurai bonds. He stated that the option should be considered further, as China is the "second largest and deepest capital market in the world." The finance minister recently led Pakistan's delegation to the World Bank Group–IMF Annual Meetings 2026 in Bangkok, where he will represent the country at key events and engage with international financial institutions, policymakers, and global investors.
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