On Thursday, Pakistan’s finance ministry announced that five Chinese firms have submitted bids to assist with the issuance of Panda Bonds. Among the bidders are three Chinese law firms and two credit agencies, all responding to the government’s call for assistance in launching these bonds in the Chinese market. The finance minister has previously indicated that the value of these bonds could reach up to $300 million.
Additionally, two Pakistani firms have also applied for the opportunity. The government is currently reviewing the bids and will make a decision in due course.
Finance Minister Muhammad Aurangzeb, who visited Beijing last week, hinted that he might discuss these bonds during his talks. Pakistan, which recently secured a $7 billion loan program from the International Monetary Fund (IMF), is seeking to strengthen its financing sources to meet IMF requirements and address its current account deficit.
Earlier in June, Aurangzeb mentioned that Pakistan aims to raise up to $1 billion through international bonds in the 2025/26 fiscal year, with up to $300 million expected to come from the Chinese market. He stated that the initial bonds would be issued in the Chinese panda bond market, with the inaugural bond targeting an amount equivalent to $250-300 million in yuan. Aurangzeb also noted that once Pakistan’s investment ratings improve, the ministry plans to explore European and other markets for future bond issuance.
