Pakistan plans to issue more Panda bonds, eyes Japanese market for borrowing: report

Pakistan is planning to issue additional Panda bonds and explore Japanese capital markets for future borrowing, according to Finance Minister Muhammad Aurangzeb. The government aims to diversify its funding sources following economic challenges brought on by the COVID-19 pandemic. In May, Pakistan launched its first Panda bond worth 1.75 billion yuan ($261 million) as part of a 7.2 billion yuan program, partially backed by the Asian Development Bank and the Asian Infrastructure Investment Bank.

Aurangzeb stated that these Panda bonds, which are yuan-denominated bonds issued in China by foreign governments or institutions, will not be a one-time issuance. Pakistan intends to continue as a repeat issuer due to China's status as the second-largest and deepest capital market globally. In addition to accessing China's market, Aurangzeb is interested in exploring the Japanese capital markets, including the issuance of yen-denominated samurai bonds.

Samurai bonds, issued in Tokyo by non-Japanese entities, would be a viable option for Pakistan. The finance minister is set to lead Pakistan's delegation to the World Bank Group–IMF Annual Meetings in Bangkok, Thailand from October 12 to 18, 2026, where he will engage with international financial institutions, policymakers, and development partners to advance Pakistan's transition towards sustainable, investment-driven growth.