ISLAMABAD: Pakistan is set to launch Panda Bonds worth $1 billion in China, marking a major step in strengthening Pakistan-China financial cooperation, sources in the Ministry of Finance confirmed on Thursday.
According to details, the bond issuance will be carried out in three phases between the current fiscal year and 2028. In the first phase, $250 million worth of Panda Bonds will be floated, while the remaining $750 million will be issued in the subsequent phases.
Initially, the government had planned to issue only $250 million worth of bonds, but the full $1 billion program has now been revived.
The Ministry of Finance has also decided to scale back the issuance of short-term Treasury Bills with floating rates as part of efforts to diversify its borrowing instruments.
Progress on the initiative is expected during Prime Minister Shehbaz Sharif’s upcoming visit to China, where the Finance Minister will also be present.
Meanwhile, economic forecasts indicate a notable expansion in Pakistan’s economy. By 2028, the country’s GDP is projected to climb from Rs114 trillion to Rs163 trillion, an increase of around Rs48 trillion.
