ISLAMABAD: In a significant development for Pakistan-China economic relations, Pakistan has decided to issue Panda Bonds worth $1 billion in the Chinese market, ARY News reported on Thursday, citing sources in the Ministry of Finance.
As per details, the issuance of the Pand Bonds will take place in three phases between the current fiscal year and 2028.
In the first phase, Panda Bonds worth $250 million will be issued.
The remaining $750 million will be launched in the second and third phases, finance ministry sources confirmed.
Previously, it was planned to issue Panda Bonds worth only $250 million, but the full $1 billion issuance is now back on the agenda.
Read more: Pakistan to sell $300 mln Panda bonds in Chinese market, says finance minister
The Ministry of Finance of Pakistan has also planned to reduce the issuance of Treasury Bills with floating interest rates and shorter terms, in an effort to diversify borrowing instruments.
Progress on the Panda Bonds initiative is expected during Prime Minister Shehbaz Sharif’s upcoming visit to China, where the Finance Minister is also scheduled to accompany him, sources added.
Meanwhile, economic projections suggest significant growth in Pakistan’s GDP size over the next three years. By 2028, the GDP is estimated to increase from Rs114 trillion to Rs163 trillion, reflecting an expected PKR 48 trillion surge.
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