Pakistan to Debut Yuan-Denominated Bonds in 2025

Pakistan is gearing up to launch yuan-denominated bonds this year, aiming to raise $200-250 million from Chinese investors over the next six to nine months. This move is part of the country's efforts to shore up its finances and meet the International Monetary Fund's (IMF) bailout loan terms.

According to Finance Minister Muhammad Aurangzeb, Pakistan's sovereign rating has been upgraded by all three credit agencies, and the country is keen to tap into the Panda bonds and Chinese capital markets. Aurangzeb expressed optimism about meeting the IMF's terms, including broadening the tax base and reaching a tax-to-GDP ratio of 13.5% ¹.

Pakistan has made significant progress in stabilizing its economy, with inflation cooling down and the rupee rising by 2% in 2024. The benchmark stock index also outperformed nearly all other equities markets last year. However, the country still faces challenges, including the need to increase taxes to secure a fresh $1 billion loan tranche from the IMF