Pakistan Issues First $250 Million Panda Bond in China, Deepening Ties at 75 Years
Updated
Updated · Al Jazeera English · May 21
Pakistan Issues First $250 Million Panda Bond in China, Deepening Ties at 75 Years
5 articles · Updated · Al Jazeera English · May 21
$250 million of three-year yuan debt was raised by Pakistan on May 14 in its first Panda Bond sale in China’s onshore market, marking a new step into Beijing’s domestic financial system.
The bond was backed by guarantees from the Asian Infrastructure Investment Bank and the Asian Development Bank, and Pakistani officials cast it as a tool to manage repayments while tightening financial links with China.
That financing move comes as Pakistan remains heavily reliant on Beijing: China holds about $29 billion of its loans, or roughly 22% of external debt, and rolled over $5.4 billion in 2025.
The broader relationship, now marking 75 years, remains strategically durable but increasingly transactional, with security cooperation deepening even as CPEC has delivered mixed economic results and Chinese nationals still face militant attacks in Pakistan.
With the US offering new deals, is Pakistan's 'iron-clad' friendship with China finally starting to rust?
Can Pakistan balance the US and China, or will it be crushed between its two powerful partners?
Pakistan’s First Panda Bond: $250 Million Entry into China’s Onshore Market and Its Economic Implications
Overview
Pakistan has made a landmark entry into China’s onshore market by issuing its first sovereign Panda bond, marking a new chapter in its financial relationship with China. This move not only strengthens the strategic partnership between the two countries but also allows Pakistan to diversify its financing options and broaden its access to global capital. By tapping into the world’s second-largest capital market, Pakistan is shifting its external financing strategy, gaining direct access to new investors, and signaling renewed engagement with international markets. This development highlights Pakistan’s efforts to build a more resilient and diversified financial future.