ISLAMABAD, October 13, 2026: Pakistan plans to return to China’s domestic bond market for further yuan-denominated borrowing and is exploring the possibility of issuing yen-denominated bonds in Japan as the government seeks to diversify its funding sources, Finance Minister Muhammad Aurangzeb has said.
In an interview with Nikkei Asia, Aurangzeb said Pakistan’s first panda bond issuance would not be a one-off exercise and indicated that the country intended to return to the Chinese market for future borrowing.
Pakistan issued its first panda bond worth 1.75 billion yuan, approximately $261 million, in mid-May under a broader 7.2-billion-yuan programme. The issuance received partial guarantees from the Asian Development Bank and the Asian Infrastructure Investment Bank.
Panda bonds are yuan-denominated debt securities issued by foreign governments, companies or institutions in China’s domestic bond market.
Aurangzeb said Pakistan intended to become a repeat issuer, highlighting China’s large capital market as an important potential source of financing.
Pakistan Considers Japan’s Bond Market
Alongside further borrowing from China, the finance minister said Pakistan was considering access to Japan’s capital markets, including the possible issuance of samurai bonds.
Samurai bonds are yen-denominated debt securities issued in Japan by foreign governments, companies or supranational institutions and are subject to Japanese financial regulations.
Aurangzeb said such an issuance could make sense for Pakistan but stressed that the proposal required further assessment.
“We need to do more homework,” he said.
Accessing additional capital markets could help Pakistan broaden its investor base and reduce reliance on a limited number of financing sources. However, the cost of borrowing, investor demand, currency exposure and repayment obligations would remain important considerations.
Four Killed, 49 Injured as 14 Coaches of Rehman Baba Express Derail Near Multan
Economic Stabilisation and IMF Programme
Pakistan is pursuing the proposed borrowing strategy following a period of economic instability marked by inflationary pressures, external financing constraints and the effects of the COVID-19 pandemic.
The country secured a $7 billion, 37-month programme from the International Monetary Fund in 2024 under its Extended Fund Facility. The programme supports economic stabilisation and structural reforms, including measures to increase tax revenues.
The government has also emphasised a transition from stabilisation towards sustainable growth driven by investment and exports.
Further access to international bond markets could provide another financing channel, although borrowing would also add to the government’s debt-servicing obligations.
Finance Minister Attends IMF-World Bank Meetings
Aurangzeb travelled to Bangkok, Thailand, to lead Pakistan’s delegation to the World Bank Group–IMF Annual Meetings, scheduled for October 12–18, 2026.
During the visit, he is expected to represent Pakistan at key events organised by the IMF and World Bank Group and hold meetings with international financial institutions, finance ministers, policymakers, development partners and global investors.
The programme also includes engagements with banks, credit rating agencies, think tanks and international media.
The meetings provide Pakistan with an opportunity to discuss economic reforms, investment prospects and financing options with international stakeholders.
Pakistan’s efforts to access China’s and Japan’s bond markets form part of its broader strategy to diversify financing and strengthen engagement with international capital markets. Any future issuance will depend on market conditions, borrowing costs and the government’s assessment of its financing needs.
