The delay in the Pakistan Panda bond has intensified as land disputes and guarantor objections stall the government’s plan to raise $250 million from Chinese debt markets.
Officials said the delay stems from disputes over the site of the Jinnah Medical Complex and objections to the location of a telemetry project in Azad Jammu and Kashmir (AJK). The bond proceeds were intended to partially fund these projects.
Pakistan has struggled to access Chinese markets directly due to its weak credit rating. As a result, it sought guarantees from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
Pakistan Panda Bond Delay Reasons
The ADB and AIIB agreed to provide guarantees, subject to the condition that the funds support green and sustainable projects. However, guarantors raised concerns over land ownership claims at the Jinnah Medical Complex site in sector H-16.
Although Prime Minister Shehbaz Sharif performed the groundbreaking ceremony in July 2024, lenders later learned of pending dues claimed by occupants. Following objections, authorities shifted the project site to H-11. A new environmental and social impact assessment will now be required.
وزارت خزانۂ ایک بار پھر ناکام
زمین کا تنازع اور بھارت کے اعتراضات کی وجہ سے چینی پانڈا بانڈز کے ذریعے قرض لینےمیں بڑی رکاوٹیں -بین الاقوامی بینکوں نے اعتراضات لگا دیے – وزیراعظم کے جناح میڈیکل کمپلیکس منصوبہ افتتاح کرنے کے بعد دوسری جگہ منتقل کرنے سے بھی مسلہ حل نۂ ھو سکا۔ pic.twitter.com/EhblwFYUD8
— Shahbaz Rana (@81ShahbazRana) February 21, 2026The telemetry project also faced setbacks. After India objected to a site in AJK, the location was removed from the plan, as international lenders do not finance projects in disputed territories.
Of the $250 million, about $76.5 million was earmarked for telemetry installations in the Indus Basin irrigation system. Another $76 million was allocated for the Jinnah Medical Complex. Additional funds were intended for strengthening power distribution and procuring medical equipment.
Internal procedural issues have further complicated the process. Sources said the external finance wing of the Ministry of Finance objected to being bypassed during negotiations and consultant appointments.
Read: Pakistan Postpones Panda Bonds Issuance to March
The bond issuance also depends on approval from China’s National Association of Financial Market Institutional Investors (NAFMII) to list the programme on its interbank bond market.
Guarantee fees from ADB and AIIB range between 0.8% and 1.25%. Once issuance costs and currency risks are factored in, officials acknowledge the overall cost may rise.
Meanwhile, the finance ministry is exploring alternative funding options, including negotiations for a $600 million loan from Standard Chartered Bank, in case the Panda bond issuance faces further delays
