# Pakistan plans $500 million Panda bond in 2027 without ADB or AIIB guarantees

Source: Searchable (https://searchable.pk/news/economy/pakistan-plans-dollar500-million-panda-bond-in-2027-without-adb-or-aiib)
Type: News article
Author: Searchable Editorial
Published: 27 Oct 2026
Updated: 27 Oct 2026
Retrieved: 27 Oct 2026

> After a $258 million debut in May that leaned on two development banks, the finance ministry wants to tap China's bond market on its own, as $1.3 billion in Chinese loans is still not fully rolled over.

**Pakistan is preparing to raise $500 million, about Rs 138 billion, from China's domestic bond market in the second half of this fiscal year (January to June 2027), without guarantees from the Asian Development Bank (ADB) or the Asian Infrastructure Investment Bank (AIIB)**, [ProPakistani reported](https://propakistani.pk/2026/10/27/pakistan-eyes-500-million-bond-raise-without-global-bank-guarantees/) on Tuesday, citing finance ministry officials. The rupee figure is our arithmetic at Rs 276.81 to the dollar, today's rate on our [dollar rate page](/data/usd-pkr).

## What a Panda bond is

A Panda bond is a bond sold in China, in yuan, by a foreign borrower. Pakistan made its debut in May 2026.

| | First Panda bond, May 2026 | Planned second issue |
|---|---|---|
| Size | 1.75 billion yuan, about $258 million | about $500 million |
| Backing | ADB and AIIB guarantees | Chinese credit enhancement institutions |
| Use | Sustainable and Green Infrastructure Project | Not stated |
| Timing | May 2026 | January to June 2027, possibly April or May |

The development banks said the first issue was the first bond with less than full guarantee cover to win a domestic AAA rating in China. Its money was earmarked for water, energy efficiency and health projects.

## Why now

The plan comes as Islamabad struggles to refinance **$1.3 billion of Chinese commercial loans** it repaid earlier on the expectation they would be rolled over. Some of that money has come back, but not all, so the ministry is looking for other sources. One official said the government now has the experience of the first issue and that "some form of Chinese credit enhancement" is likely to be used.

## What it means for you

Cheaper, more varied foreign borrowing eases pressure on the rupee and on reserves, which feeds into what you pay for imported fuel and goods. It also adds to debt that the budget must service. The finance minister has also pointed to a planned $3 billion Eurobond, as we reported from the [World Bank's latest Pakistan update](/news/economy/world-bank-tells-pakistan-to-move-from-stability-to-growth-aurangzeb-points-to).

To see what today's exchange rate means for any amount, use our [currency converter](/tools/finance/currency-converter).

## Frequently asked questions

**What is Pakistan's Panda bond?**

A yuan bond sold in China's domestic market. Pakistan's first, in May 2026, raised 1.75 billion yuan (about $258 million) with ADB and AIIB guarantees; a second of about $500 million is planned for January to June 2027.

## Sources

- Pakistan Eyes $500 Million Bond Raise Without Global Bank Guarantees (27 Oct 2026) (ProPakistani): https://propakistani.pk/2026/10/27/pakistan-eyes-500-million-bond-raise-without-global-bank-guarantees/
- Dollar rate in Pakistan today (Searchable): https://searchable.pk/data/usd-pkr

How to cite: "Pakistan plans $500 million Panda bond in 2027 without ADB or AIIB guarantees", Searchable, 27 Oct 2026, https://searchable.pk/news/economy/pakistan-plans-dollar500-million-panda-bond-in-2027-without-adb-or-aiib