China has welcomed Pakistan’s improving economic position and renewed access to international financial markets as both countries discussed expanding financial cooperation, new Panda Bond issuances, and regional development initiatives.
Chinese Finance Minister Lan Fo’an met Pakistan’s Finance Minister Muhammad Aurangzeb on the sidelines of the World Bank Group and IMF Annual Meetings 2026 in Bangkok, Thailand.
During the meeting, Aurangzeb highlighted Pakistan’s progress towards macroeconomic stability and thanked China for its continued support during difficult economic conditions.
The two ministers reviewed Pakistan’s first Panda Bond issuance, which attracted strong investor demand and carried a competitive coupon rate of 2.5 percent.
The Asian Infrastructure Investment Bank (AIIB) also provided credit enhancement for the issuance.
Aurangzeb said Pakistan intends to remain an active issuer in China’s capital market. The discussions covered plans for further Panda Bond issuances under the approved RMB 7.2 billion program, with continued AIIB support, as well as Pakistan’s return to the Eurobond market after four years.
Both sides also discussed regional financial cooperation under the Shanghai Cooperation Organisation (SCO). Pakistan is preparing to host the upcoming SCO summit and the preceding meeting of SCO finance ministers in Islamabad.
Lan Fo’an expressed his intention to attend the ministerial meeting.
The ministers exchanged views on establishing an SCO Development Bank to support regional financial cooperation.
China sought Pakistan’s active participation in consultations and efforts to build consensus on the proposed institution. Aurangzeb reaffirmed Pakistan’s support for advancing the initiative.
Infrastructure cooperation was another topic, with Lan referring to progress towards an agreement on proposed changes to the route of a China-Pakistan highway project.
Aurangzeb also briefed his Chinese counterpart on Pakistan’s engagement with Alibaba to promote digital transformation and artificial intelligence skills training.
He reaffirmed the government’s commitment to implementing the cooperation framework.
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