Pakistan’s government will raise $750 million through commercial loans and Panda Bonds, the Finance Ministry announced on September 23, 2025. The government will use the funds to cover upcoming Eurobond repayments.
A $500 million Eurobond matures on September 30, 2025, and another $1 billion will reach maturity in April 2026. This funding plan ensures timely payments without putting pressure on the country’s reserves.
A consortium of banks will provide the funds. The government expects to raise $200–300 million through Panda Bonds, which settle in Chinese yuan, while commercial loans will cover the remaining amount. The Asian Infrastructure Investment Bank (AIIB) may also provide credit support.
Read: Pakistan to Issue $1 Billion Panda Bonds
Finance Minister Muhammad Aurangzeb explained that issuing Panda Bonds diversifies Pakistan’s funding sources and reduces dependence on dollar-denominated loans. The plan aims to raise Pakistan’s credit rating to single ‘B’ and strengthen economic ties with China’s markets.
Raising $750 million will help stabilise Pakistan’s finances and demonstrate prudent debt management. The Panda Bond issuance not only deepens financial ties with China but also boosts investor confidence.
Pakistan’s $750 million funding strategy, combining Panda Bonds and commercial loans, addresses upcoming Eurobond deadlines and supports sustainable financial growth. Stay tuned for further updates on Pakistan’s economic outlook.
