Pakistani finance minister on issuing panda bonds in China

China

Pakistani finance minister on issuing panda bonds in China

2026-05-16 19:50 Last Updated At：20:07

Issuing panda bonds in China allows Pakistan to tap the second largest, and the second deepest capital market in the world, said Pakistan's Minister for Finance and Revenue Muhammad Aurangzeb in Beijing on Friday.

The issuance of the bonds on Friday, worth 1.75 billion yuan (about 255.79 million U.S. dollars), marked Pakistan's first such sovereign bond in the offshore capital markets aimed to support the development of sustainable and climate-resilient infrastructure across the water, energy and health sectors.

Talking to China Global Television Network (CGTN), Aurangzeb explained the significance of the panda bond program.

"This particular transaction really focuses on three key elements. One is from Pakistan's perspective, we have had financings in many forms and shapes with China. Today marks a very important event that we tap the second largest, and the second deepest capital market in the world. The second thing is, as I mentioned earlier, we will work with China and therefore it's a win-win in terms of the internationalization of RMB. The third one is that we are very grateful to all our partners in China, starting with regulators, and the Chinese authorities," said the minister.

He also expressed confidence in more future bilateral economic and financial cooperation within the frameworks of the Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC). "I think it's not only trade, but also the investment opportunity. Because as you know we have CPEC Phase I as a flagship of the BRI, which was almost entirely about infrastructure. CPEC Phase II is primarily business to business, and it's about monetization of that infrastructure. I think between the two countries, the priorities are quite aligned in terms of the key priorities that President Xi has put forward for the BRI. So all of this I think is moving in the right direction," said Aurangzeb.

Panda bonds refer to renminbi-denominated bonds issued by overseas entities in China. In recent years, the panda bond market has seen steady gains, becoming increasingly attractive to issuers.

According to data from the People's Bank of China, more than 170 billion yuan worth of panda bonds were issued by governments, international development institutions, financial firms and large corporations from multiple countries in 2025, with the outstanding volume rising 34 percent year on year.

Gaza residents clear rubble by hand as large-scale reconstruction stalls

Displaced Palestinians in the Gaza Strip are manually removing rubble using basic tools, in the absence of heavy machinery and international reconstruction assistance.

Seven months into a fragile ceasefire, large-scale reconstruction remains largely stalled in Gaza, with Israeli restrictions on construction materials and unresolved political disputes deemed as key obstacles.

Many families in the enclave say they can no longer wait for rebuilding plans to begin.

Mohammad Adel, who lost his seven-story home in Khan Younis during the war, has been living with his family under difficult displacement conditions in the crowded tents of Al Mawasi for more than two years.

Unable to wait any longer, Adel decided to begin clearing the rubble of his home by hand.

"We see that there will be no reconstruction for Gaza and the closure is very strict on us. Waiting for reconstruction will take a very long time, so we started working and removing the rubble with our own hands. As you can see, this will cost us money, but we are trying to prepare the place so we can live in it," he said.

For some unemployed workers, clearing debris has become a temporary source of income amid the economic collapse caused by the war.

"Today, financial means have become nonexistent. Before the war, I had a chicken farm, but my work stopped because of the war. So I searched for another job that could provide me with an income, and I have no choice except this extremely exhausting work," said Abdullah Al Bayouk, a worker.

Palestinian officials warn that the continued delay in reconstruction is forcing thousands of displaced families to remain inside tents or unsafe damaged buildings, under worsening humanitarian conditions.

"Over 400,000 residential buildings have been either totally destroyed or rendered uninhabitable, along with more than 60 million tons of rubble. And 3,000 more housing units are at risk of collapse, yet people are still living inside them," said Mohannad Abboud, director of reconstruction of the Palestinian Ministry of Public Works.

A recent UN report showed that rebuilding Gaza and clearing the debris will require more than 71 billion U.S. dollars over the next decade. The rubble is estimated to cover around 78 percent of buildings across the strip.