Panda power: Pakistan to tap China debt market with first sale of yuan-priced notes

AI Summary

Pakistan plans to access Chinese capital markets through the issuance of panda bonds, aiming to raise approximately $250 million. This initiative aligns with the Belt and Road Initiative and represents a significant step for Islamabad in enhancing its economic ties with China.

Pakistan is poised to become the latest partner in a China-centred trading network, known as the Belt and Road Initiative, to sell “panda bonds”. Islamabad seeks to raise as much as US$250 million through its first-ever sale of the bonds – yuan-denominated debt instruments sold by foreign entities in mainland China’s onshore market – as early as this week. Finance Minister Muhammad Aurangzeb confirmed on Saturday that Islamabad was preparing to access Chinese capital markets with the sale – the...