Pakistan is planning to raise additional funds from China’s domestic debt markets after the successful launch of its first yuan-denominated panda bond, Finance Minister Muhammad Aurangzeb said in an interview.

According to reports, Pakistan’s debut panda bond issuance attracted strong investor interest and was oversubscribed by more than five times, signaling growing confidence among Chinese investors in the country’s financial outlook.

The government raised approximately $258 million through the issuance, which officials described as Pakistan’s lowest-cost foreign currency bond sale to date.

Aurangzeb said the transaction is part of a broader long-term financing strategy aimed at diversifying Pakistan’s external funding sources and reducing reliance on traditional international borrowing channels.

“We are very clear that this is not a single event,” the finance minister said, adding that the total panda bond programme has a planned size of $1 billion, with further renminbi-denominated issuances expected in upcoming phases.

The development marks another step in Pakistan’s gradual return to global and regional debt markets following the severe economic crisis and near-default situation faced by the country in 2023.

Last month, Pakistan also secured $500 million through a private placement transaction, its first international market borrowing in four years.

The government has been implementing a series of economic and fiscal reforms under programmes backed by the International Monetary Fund to stabilize the economy, improve public finances, and rebuild investor confidence.

Analysts say successful access to China’s onshore bond market could provide Pakistan with an alternative source of external financing at comparatively lower borrowing costs, particularly as the government seeks to manage rising debt obligations and support foreign exchange reserves.