In January 2026, Pakistan will introduce the first Panda Bond.

Pakistan will issue its first Panda Bond in January 2026, according to the Ministry of Finance.

The Panda Bond will be a part of a planned program with a total value of up to one billion dollars, according to Finance Minister Muhammad Aurangzeb, who made the news during a review meeting.

According to him, final permission from Chinese officials is anticipated in early January, while multilateral partners have already granted their consent.

The effort seeks to tap China’s onshore debt market and diversify funding sources, according to the Ministry of Finance. An estimated $250 million will be raised by the first bond offering; further tranches will be issued following regulatory clearances.

The bond will be offered for sale on the domestic market in China and will be valued in yuan. Under the IMF’s seven-billion-dollar program, the program is a component of Pakistan’s larger debt management strategy to stabilize the economy.

Following recent policy improvements, the ministry stated, engagement with Chinese institutional investors has remained favorable, showing increased confidence in Pakistan’s macroeconomic conditions.