Pakistan is planning to launch a $250 million Panda bond in May as part of its strategy to shift toward commercial and market-based financing, Finance Minister Muhammad Aurangzeb said.

Speaking to reporters during the EU Pakistan Business Forum in Islamabad, Aurangzeb said discussions with Chinese authorities were in the final stages for the planned issuance.

He said the Panda bond would carry guarantees from the Asian Development Bank and the Asian Infrastructure Investment Bank, a structure aimed at lowering borrowing costs and improving investor appetite.

The planned issue marks part of Pakistan’s broader effort to reduce reliance on bilateral financing and move increasingly toward diversified funding sources through capital markets.

Aurangzeb said the government intends to raise more funds through international debt markets over the next two to three years, including via Eurobonds and Sukuk, as it seeks to expand access to global investors.

He added that Pakistan was not currently seeking additional financing from friendly countries beyond existing support arrangements, including those from Saudi Arabia.

The finance minister also said remittances had remained stable despite regional tensions in the Middle East and noted that the country had not faced any major disruption in food or fertilizer supplies.