Pakistan-China B2B Event Sparks Energy Storage Deals
May 11, 2026
Pakistan plans to raise $250 million through its first yuan-denominated Panda bond as part of efforts to diversify funding sources and strengthen reserves.
Read: Pakistan Plans Inaugural $250M Panda Bond
Pakistan is set to enter China’s domestic capital market for the first time through a yuan-denominated “Panda bond” issuance expected next week, according to Finance Minister Muhammad Aurangzeb.
Speaking during a press conference alongside Petroleum Minister Ali Pervaiz Malik, Aurangzeb said, “God willing, next week you will hear good news that for the first time, we will be accessing Chinese capital markets through Panda bond.”
The planned $250 million issuance is part of a broader $1 billion programme backed by the Asian Development Bank and the Asian Infrastructure Investment Bank. Officials believe the move will help Pakistan diversify external financing sources, strengthen foreign exchange reserves and improve investor confidence amid ongoing economic reforms.
Pakistan has increasingly relied on multilateral lenders and friendly countries since its 2023 balance-of-payments crisis, which pushed the country close to sovereign default. The government is currently operating under an International Monetary Fund reform programme focused on fiscal discipline and macroeconomic stability.
Aurangzeb said the economy is showing signs of recovery despite pressure caused by regional tensions and disruptions around the Strait of Hormuz, a critical global energy shipping route. According to the finance minister, Pakistan’s large-scale manufacturing sector posted 11% year-on-year growth in April, while cumulative growth during the first nine months of the fiscal year reached 6.5%.
He further stated that exports grew 14% year-on-year, driven by value-added textiles, IT services and other sectors. The government expects GDP growth to remain close to 4% this fiscal year, compared to 3.1% last year.
Aurangzeb also highlighted the importance of overseas Pakistanis in supporting the economy. Remittances stood at $3.5 billion in April after reaching $3.8 billion during Ramazan, while inflows through the Roshan Digital Account programme rose to $320 million — the highest monthly level since its launch.
“This is an investment-led discussion. Overseas Pakistanis are investing in New Pakistan Certificates, real estate and the stock market,” Aurangzeb said.
Alongside Panda bonds, Pakistan is also exploring Eurobonds, Sukuk, commercial borrowing and additional bilateral support to manage reserve pressures and reduce reliance on short-term financing arrangements.
