Pakistan is planning to issue its first tranche of Panda bonds before December of this year, following the example of several countries seeking to diversify their funding sources. Pakistan is a key destination for Chinese President Xi Jinping’s ‘One Belt, One Road’ initiative, and Beijing has provided billions in loans to keep the nation afloat. Pakistan seeks to attract Chinese investors by issuing Panda bonds as its government rebuilds an economy that nearly collapsed in 2023. The country’s finance minister stated in March of last year to Bloomberg News that the initial Panda bond sale would be followed by further issuances. However, it remains below investment grade and requires improvement guarantees, which Pakistan has requested from the Asian Infrastructure Investment Bank and the Asian Development Bank, according to the documents.