ISLAMABAD: Pakistan has decided to issue Panda Bonds worth $1 billion in the Chinese market, according to sources in the Ministry of Finance told media.
The bonds will be launched in three phases, starting from the current fiscal year and continuing until 2028.
In the first phase, Panda Bonds worth $250 million will be issued, while the remaining $750 million will be launched in the second and third phases, the sources revealed. This marks a shift from an earlier plan to issue only $250 million worth of Panda Bonds instead of the full $1 billion.
The Ministry of Finance has also planned to reduce the issuance of floating-rate and short-term Treasury Bills (T-Bills) as part of its broader financial strategy.
Significant progress on the issuance of Panda Bonds is expected during Prime Minister Shehbaz Sharif’s upcoming visit to China. The Prime Minister will be accompanied by the Finance Minister, with the visit scheduled for next month, according to Finance Ministry sources.
In addition to the bond issuance, the Ministry of Finance has projected a substantial increase in Pakistan’s GDP size over the next three years. By 2028, the GDP is estimated to grow from Rs. 114 trillion to Rs. 163 trillion, reflecting an increase of Rs. 48 trillion.
