Pakistan to issue 'panda bonds' this year

Pakistan plans to issue yuan-denominated "panda bonds" this year, further integrating its capital markets with China's — a testament to the deepening cooperation between the two neighbors and China's key role in Pakistan's digital transformation, a senior Pakistani official said.

Speaking on Wednesday on the sidelines of the Boao Forum for Asia Annual Conference 2025 in Hainan province, Pakistan Minister for Finance and Revenue Muhammad Aurangzeb highlighted the growing bilateral collaboration across multiple sectors.

China's advances in technological innovation and connectivity and its steadfast commitment to opening-up serve as a counterbalance to unilateralism and protectionism, and "Pakistan and China are ironclad friends and strategic partners. We remain grateful to China for helping us in our journey of growth", Aurangzeb said.

He cited the China-Pakistan Economic Corridor, a flagship Belt and Road Initiative project. As the project moves into its second phase, the emphasis has shifted toward monetizing infrastructure and attracting investment.

"Going forward, technical support and the knowledge economy will be very critical components of our relationship," he said.

Aurangzeb also shared insights from his visits to Chinese banks, saying that the South Asian nation could leverage China's experience to enhance financial inclusion through digital solutions.

He also pointed to the vast potential of business-to-business collaboration, citing a joint venture formed last year allowing China's leading new energy vehicle manufacturer, BYD, to enter the Pakistani market for the first time.

Addressing rising global economic fragmentation and geopolitical tensions, Aurangzeb stressed the importance of staying committed to globalization.

"Technology is a great equalizer," he remarked, highlighting Deep-Seek, a Chinese AI startup that has made waves globally.

He praised the regional corridors developed under the BRI framework, emphasizing that cross-border infrastructure and logistics will be "a real enabler" in maintaining strong trade flows among participating nations.

Citing China as the second-largest economy, Aurangzeb said he believes that China will become an even larger economy in the world.

China's commitment to multilateralism and globalization, he added, is encouraging for the global economy, and Beijing is poised to continue leading global economic growth.