Pakistan will issue its first-ever green Panda bond in China by the end of January, Finance Minister Muhammad Aurangzeb announced at the World Economic Forum in Davos. The bond targets $250 million and supports sustainable, climate-resilient investment.
A Panda bond is a Renminbi-denominated bond issued by foreign entities in China, providing access to Chinese investors and aiding internationalisation of the RMB.
Aurangzeb stressed that debt is not harmful if used productively. For Pakistan, borrowing must fund projects that generate exports rather than consumption, ensuring long-term growth and fiscal stability.
The minister highlighted improvements in Pakistan’s fiscal management, including a drop in debt-to-GDP from 75% to 70%, reduced inflation, and lower policy rates, positioning the country for sustainable economic expansion.
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