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ISLAMABAD, Mar 13 (APP): Financial experts, policymakers, and energy specialists have identified Panda Bonds as a crucial tool to attract sustainable investments and drive Pakistan’s renewable energy transition.
In a high-level webinar hosted by the Sustainable Development Policy Institute (SDPI), experts discussed how these yuan-denominated bonds could help address Pakistan’s financing challenges, restructure debt, and support green infrastructure development, said a press release on Thursday.
Eraj Hashmi, Director of Debt Management at the Ministry of Finance, announced that Pakistan is preparing to issue sustainable Panda Bonds within the year, emphasizing their lower interest rates compared to Eurobonds.
He also revealed the government’s plans for a Green Sukuk issuance, reinforcing its commitment to green financing.
Hamid Sharif, former Managing Director of AIIB, emphasized the importance of structured credit enhancements to boost investor confidence, while Dr Hassan Daud Butt, former CPEC Project Director, recommended linking Panda Bonds to major projects like Main Line-1 (ML-1) railway development and sustainable tourism initiatives in Gilgit-Baltistan.
Experts, including Dr Khalid Waleed from SDPI, highlighted the strategic advantages of Panda Bonds, such as currency diversification, enhanced liquidity, and financial resilience.
Dr Christoph Nedopil Wang, Director of Griffith Asia Institute, pointed to high investor demand for sustainability-linked bonds, urging Pakistan to adopt innovative financing models similar to Egypt’s sustainable bonds.
With China’s Panda Bond market expanding rapidly, Hongyu Guo of Greenovation Hub advised Pakistan to position its issuance within the sustainability niche to attract Chinese investors.
As Pakistan navigates economic challenges, experts see Panda Bonds as a strategic gateway to green investment, debt restructuring, and deeper financial integration with China, setting the stage for a new era in sustainable financing.