Pakistan’s entry into China’s capital market marks new era of financial cooperation, says Aurangzeb

Finance Minister Muhammad Aurangzeb has said that Pakistan’s inaugural Panda Bond issuance marks a transformational step in the country’s financial landscape and opens a new chapter in Pakistan-China economic cooperation by enabling Pakistan to access the world’s second-largest and second-deepest capital market for the first time.

In an interview with China Global Television Network (CGTN) following the official Panda Bond issuance ceremony in Beijing, the finance minister stated that the successful issuance reflects the growing confidence of Chinese institutions and global investors in Pakistan’s macroeconomic stability, reform agenda, and economic direction, according to a statement.

Aurangzeb emphasised that the Panda Bond issuance is not only significant for Pakistan’s financing strategy but also contributes towards the internationalisation of the Renminbi (RMB). He noted that nearly one-quarter of bilateral trade between Pakistan and China is already being settled in RMB and Chinese Yuan (CNY), highlighting the increasing financial integration and expanding economic partnership between the two countries.

The overall Panda Bond Programme is valued at $1 billion, while the inaugural issuance amounts to the equivalent of $250 million. The issuance is being supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). Representatives from China’s Ministry of Finance and the People’s Bank of China also attended the ceremony.

Discussing the broader trajectory of Pakistan-China economic cooperation, the finance minister observed that while the first phase of the China-Pakistan Economic Corridor (CPEC) largely focused on infrastructure development under the Belt and Road Initiative (BRI), the second phase is increasingly centred on business-to-business collaboration, industrial cooperation, and monetisation of infrastructure assets.

He stated that the strategic priorities of Pakistan and China remain closely aligned in promoting connectivity, trade, investment, and sustainable economic growth.

Aurangzeb further stated that Pakistan had successfully managed the first-order implications of the prevailing regional conflict, including challenges relating to procurement and logistics, while maintaining macroeconomic stability and ensuring that key economic indicators continue moving in the right direction.

He reaffirmed the government’s commitment to structural reforms, fiscal discipline, and investment-friendly policies aimed at promoting long-term and inclusive economic growth. He noted that ongoing reforms in taxation, energy, state-owned enterprises, and digital governance are strengthening investor confidence and improving Pakistan’s economic outlook.

Aurangzeb expressed appreciation for the support and cooperation extended by the Government of China, Chinese regulators, financial institutions, and multilateral development partners in facilitating Pakistan’s successful entry into the Chinese onshore bond market. He expressed confidence that the successful issuance would pave the way for future sovereign issuances and deeper financial connectivity between Pakistan and China.