Pakistan to Launch Panda Bond in China: Aurangzeb at Davos
DAVOS: Finance Minister Muhammad Aurangzeb announced that Pakistan issue it’s first-ever Green Panda Bond in China by in the end of this month, marking the country’s entry into Chinese domestic capital market.
Huda Sheikh : 21 January 2026
Speaking on sidelines of World Economic Forum, the RMB-denominated bond will be structured as a green bond to support climate-resilient & sustainable development projects, as Pakistan remains one of the most climate-vulnerable countries.
Aurangzeb said debt itself is not negative if used effectively, for countries like Pakistan, borrowed funds must be directed towards export manufacturing sectors rather than consumption to ensure sustainable repayment and long-term growth.
He stressed improvements in key economic indicators, noting that Pakistan has reduced its debt to GDP ratio, brought inflation down from historic highs to single digits. He said improved economic discipline has bound the country’s ability to respond to climate-related shocks through domestic resources.
Finance minister pointed the role of capital markets and public private partnerships in supportive large development projects, adding that Pakistan is focusing on exports, technology and sustainable financing as drivers of future growth.
What's Your Reaction?
