Finance Minister Muhammad Aurangzeb on Saturday said Pakistan’s inaugural Panda Bond issuance marked a “transformational step” in the country’s financial landscape and opens a new chapter in Pakistan-China economic cooperation by giving Pakistan access to the world’s second-largest and second-deepest capital market for the first time.

Speaking in an interview with China Global Television Network (CGTN) following the official Panda Bond Issuance Ceremony in Beijing, Aurangzeb said the successful issuance reflected the growing confidence of Chinese institutions and global investors in Pakistan’s macroeconomic stability, reform agenda and economic direction.

Read: FinMin highlights Pakistan, China ties at bond launch

The finance minister said the Panda Bond issuance was significant not only for Pakistan’s financing strategy but also for the internationalisation of the Renminbi (RMB).

“Nearly one-quarter of bilateral trade between Pakistan and China is already being settled in RMB and Chinese Yuan (CNY),” he said, highlighting increasing financial integration and expanding economic partnership between the two countries.

Discussing broader Pakistan-China economic cooperation, Aurangzeb said the first phase of the China-Pakistan Economic Corridor (CPEC) under the Belt and Road Initiative (BRI) had largely focused on infrastructure development, while the second phase was increasingly centred on business-to-business collaboration, industrial cooperation and monetisation of infrastructure assets.

“The strategic priorities of Pakistan and China remain closely aligned in promoting connectivity, trade, investment, and sustainable economic growth,” he said.

Aurangzeb also said Pakistan had successfully managed the “first-order implications” of the prevailing regional conflict, including procurement and logistics challenges, while maintaining macroeconomic stability.

“Key economic indicators continue moving in the right direction,” he said.

The minister reaffirmed the government’s commitment to structural reforms, fiscal discipline and investment-friendly policies aimed at promoting long-term and inclusive economic growth.

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“Ongoing reforms in taxation, energy, state-owned enterprises, and digital governance are strengthening investor confidence and improving Pakistan’s economic outlook,” he said.

Aurangzeb participated in the interview after attending the official ceremony marking Pakistan’s first-ever Panda Bond issuance in Beijing on Friday.

The overall Panda Bond Programme is valued at $1 billion, while the inaugural issuance amounts to the equivalent of $250 million. The issuance is being supported by the Asian Development Bank and the Asian Infrastructure Investment Bank.

Representatives from China’s Ministry of Finance and the People's Bank of China also attended the ceremony.

Aurangzeb expressed appreciation for the support extended by the Chinese government, regulators, financial institutions and multilateral development partners in facilitating Pakistan’s entry into the Chinese onshore bond market.

He said he was confident the successful issuance would pave the way for future sovereign issuances and deeper financial connectivity between Pakistan and China.