ISLAMABAD: Finance Minister Muhammad Aurangzeb announced that Pakistan plans to issue its first Panda Bond by June 2025, aiming to strengthen the country's presence in China's capital markets.

In an interview with Hong Kong's TVB News Channel, he explained that the bond issuance is expected to raise between $200 million and $250 million from Chinese investors. Aurangzeb emphasized that while the amount is important, the primary goal is to launch the inaugural bond successfully. Once completed, Pakistan could continue to issue bonds regularly to tap into China's capital markets. He noted that not engaging with the world's second-largest capital market until now had been a missed opportunity for Pakistan, which is eager to correct this oversight. Pakistan's sovereign credit ratings, while upgraded since securing a $7 billion bailout from the International Monetary Fund (IMF), remain at the "CCC" or "Caa" levels, limiting the country's access to global financing options. Aurangzeb expressed optimism that with reforms aligned to IMF conditions, Pakistan could eventually reach a "B" rating, opening up more opportunities for financing. In addition to Panda Bonds, the finance minister highlighted other initiatives, such as the equity listing of Service Long March, a Pakistani-Chinese joint venture, on Hong Kong's stock market. He sees Hong Kong as an ideal platform for raising capital, particularly for joint ventures between Pakistan and China, and for future equity listings. Aurangzeb also addressed concerns regarding security for Chinese nationals and projects in Pakistan, following a series of militant attacks. He reassured that the Pakistani government prioritizes security for all foreign nationals, particularly Chinese citizens, and that the situation on the ground is improving despite media reports.