Pakistan plans more Panda bonds after first Rs 72 billion yuan issue, studies Samurai bond in Japan: Aurangzeb
The finance minister says Pakistan will be a repeat borrower in China's bond market and is doing "homework" on yen bonds. The numbers, and what they mean for the rupee.
Pakistan will go back to China's bond market for more yuan borrowing and is studying a first Samurai bond in Japan, Finance Minister Muhammad Aurangzeb told Nikkei Asia, Business Recorder reported on Tuesday. He spoke in Bangkok, where he is leading Pakistan's delegation at the IMF and World Bank annual meetings from 12 to 18 October.
"It will not be a one-time issuance," Aurangzeb said of the Panda bond, adding that Pakistan wants to be a repeat issuer in what he called the "second largest and deepest capital market in the world". He gave no size or date for the next sale.
The numbers so far
| Panda bond (yuan) | Samurai bond (yen) | |
|---|---|---|
| Status | First issue done, more planned | Being studied |
| First issue | 1.75 billion yuan, mid-May 2026 | None yet |
| In dollars | about $261 million | |
| In rupees | about Rs 72 billion at today's rate | |
| Programme | 7.2 billion yuan | |
| Guarantees | Partly guaranteed by the ADB and AIIB |
The rupee figure uses the interbank dollar rate of Rs 276.97 on our USD to PKR page. On the Samurai bond, Aurangzeb said it "would make sense" but that "we need to do more homework".
Why Pakistan is looking east
The government is trying to widen the list of places it borrows from beyond the IMF, friendly-country deposits and the dollar Eurobond market. Pakistan is in a $7 billion, 37-month IMF Extended Fund Facility signed in 2024, and the minister plans more than 60 meetings in Bangkok with lenders, investors and ratings agencies.
What it means for you
New foreign borrowing does not change your bills directly, but it supports the State Bank's reserves, and steadier reserves help keep the rupee stable, which feeds into the prices of imported fuel, cooking oil and phones. Follow the rupee daily on our dollar rate page, and the policy rate behind your loan instalments on our SBP policy rate page.
Earlier on Tuesday the IMF's October outlook put Pakistan's inflation at 9.9% for FY27: what it means for you.
Frequently asked questions
- How much did Pakistan raise from its first Panda bond?
- 1.75 billion yuan, about $261 million or roughly Rs 72 billion, in mid-May 2026, under a 7.2 billion yuan programme partly guaranteed by the ADB and AIIB.
Sources
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