Pakistan set to launch Panda Bond with $250m inaugural issue: Khurram Schehzad

KARACHI, (APP - UrduPoint / Pakistan Point News - 13th May, 2026) Advisor to Finance Minister Khurram Schehzad, Wednesday, announced that Pakistan is set to launch Panda Bond within a few days in the Chinese capital market with a $250 million issue, the first of the planned $1 billion programme aimed at diversifying foreign financing sources and bolstering foreign exchange reserves.

The Advisor to the Finance Minister was addressing the opening session of a two-day workshop titled “Pakistan’s Evolving Tax Landscape: Challenges, Opportunities & Innovations,” jointly organised by the PTBA academy of Taxation and Karachi Tax Bar Association (KTBA) in Karachi.

Khurram Schehzad, while providing an overview of the economic transformation journey stated that Pakistan is successfully managing and paying off its debt as reflected by the fact that the public debt to GDP ratio has lowered to 70% in FY25 down from 75% of FY23 with early payoffs amounting to $14 billion while current account, SBP reserves and forex rate are stable.

He said that building on the economic progress and return in the global bond market after 4 years with the successful launch of Eurobond at competitive rates, we are going to present the inaugural issue of Panda Bond in China, one of the largest and deepest capital markets of the world.

The advisor said that multiple sectors are showing encouraging signs of recovery and improvement despite regional and global challenges. He said the government’s reform and growth agenda is being advanced through macroeconomic stabilisation, structural reforms, Digital Pakistan initiatives, energy sector reforms, tariff rationalisation, privatisation, pension and debt reforms, and rightsizing measures.

Real real GDP growth is stable and the economy is picking up while comprehensive measures are underway for fiscal consolidation, he said, adding that for the first time in the country we have achieved fiscal surplus in the first half of the ongoing fiscal year while Primary surplus was also at its highest level of 3.2% of GDP.

Khurram Schehzad said that the government is focused on two key objectives: enhancing tax collection and ensuring that tax policy is aligned with the principles of equity, fairness, and inclusivity. He observed that under the social contract between the State and citizens, public resources must be mobilised and utilised in a transparent and welfare-oriented manner.

The Advisor highlighted that the government has introduced important institutional reforms by separating tax policy formulation from tax administration and collection functions. He noted that the Tax Policy Office has now been structured independently to strengthen transparency, improve policy design, and enhance administrative efficiency.

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Inviting participants to contribute research, proposals, and practical recommendations to the Tax Policy Office, Schehzad stressed the importance of a collaborative and long-term approach towards reform. He said that the government remains committed to strengthening the economy through sustainable reforms, improved governance, and broader taxpayer facilitation.

Commenting on the economic outlook, the advisor said that Pakistan’s economic growth during the first half of the current fiscal year stood at approximately 3.8 percent. He emphasised the importance of achieving durable and sustainable growth instead of cyclical recoveries followed by repeated external stabilisation measures.

He said that tariff reforms under the National Tariff Policy 2025-30 represent an important step towards enhancing productivity, improving industrial competitiveness, supporting exports, and integrating Pakistan more effectively with regional and global markets.

He added that the government’s broader reform agenda is aimed at reducing structural inefficiencies, improving the performance of state-owned enterprises, and creating a more competitive and investment-friendly economy. He also noted that Pakistan’s ongoing economic reforms are receiving increasing international recognition, reflecting growing confidence in the country’s economic direction.

The Advisor appreciated the active participation of young professionals and emerging experts in discussions on tax policy and expressed hope that constructive proposals and recommendations emerging from the workshop would support future policy formulation and implementation.

Chairman PTBA Academy of Taxation, Abdul Qadir Memon, highlighted prevailing economic trends and identified key structural and policy areas requiring further attention to strengthen the country’s fiscal and taxation framework. He reiterated that tax bars across the country remain committed to contributing positively towards reforms aimed at improving transparency, taxpayer facilitation, documentation, and overall confidence in the tax ecosystem.

President KTBA, Mehmood Bikiya, acknowledged that the government’s recent reform initiatives are moving in a positive direction and are broadly aligned with evolving global trends and economic needs.

He stated that the workshop aimed to facilitate constructive discussion on Pakistan’s evolving tax landscape, particularly in the areas of digitalisation, documentation, broadening of the tax base, and emerging compliance challenges.

He emphasised that continued engagement among policymakers, tax authorities, professionals, and the business community is vital for effective implementation of reforms in their true spirit.