Pakistan has announced plans to issue $1 billion worth of Panda Bonds in China over the next several years. The issuance will take place in three phases, beginning with $250 million in the current fiscal year, followed by $750 million in future phases through 2028.
The primary objective of this move is to diversify Pakistan’s borrowing methods and decrease dependence on short-term Treasury Bills, which have variable interest rates. By tapping into the Chinese market, Pakistan hopes to secure stable, long-term financial backing.
This initiative is expected to be a significant topic of discussion during the Prime Minister’s upcoming visit to China. Financial experts predict the move will strengthen economic relations between the two countries, providing Pakistan with more options for financing future development projects.
With the Pakistani economy expected to grow substantially in the coming years, the launch of Panda Bonds is seen as a necessary step to stabilize the nation’s debt and secure funding for the future.
