Bangkok (TDI): Pakistan has reaffirmed its support for establishing a Shanghai Cooperation Organization (SCO) Development Bank and outlined plans to issue additional Panda Bonds in China, as Islamabad seeks to deepen regional financial cooperation and maintain access to international capital markets.
The commitments were discussed during a meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and Chinese Finance Minister Lan Fo’an on the sidelines of the 2026 World Bank Group–International Monetary Fund (IMF) Annual Meetings in Bangkok, Thailand.
According to Pakistan’s Finance Ministry, the Chinese side sought Islamabad’s active participation in ongoing consultations and support for building consensus among SCO member states on establishing the proposed development bank.
Aurangzeb reaffirmed Pakistan’s commitment to advancing the initiative, which is intended to strengthen regional financial cooperation and support economic engagement among member countries.
The discussions come as Pakistan prepares to assume a prominent role in the SCO’s financial agenda through its chairmanship and preparations for upcoming ministerial-level meetings.
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The two finance ministers also reviewed Pakistan’s strategy to maintain a sustained presence in China’s capital market through additional Panda Bond issuances.
Panda Bonds are renminbi-denominated bonds issued by foreign governments or institutions in China’s domestic bond market. For Pakistan, they offer a potential avenue to diversify financing sources and expand access to Chinese investors.
Aurangzeb briefed his counterpart on Pakistan’s inaugural Panda Bond issuance, which received regulatory support and credit enhancement from the Asian Infrastructure Investment Bank (AIIB).
The inaugural issuance secured a coupon rate of 2.5% and attracted strong investor demand, according to the information provided by Pakistan’s Finance Ministry.
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Aurangzeb outlined plans for further issuances under Pakistan’s approved RMB 7.2 billion Panda Bond program, with continued AIIB support.
The ministers also discussed Pakistan’s planned return to the Eurobond market after a four-year absence, reflecting Islamabad’s efforts to broaden its financing options and re-establish access to international investors.
