China has welcomed Pakistan’s improving economic conditions and renewed access to international financial markets during talks between the two countries’ finance ministers in Bangkok, Thailand.
Federal Finance Minister Muhammad Aurangzeb met Chinese Finance Minister Lan Fo’an on the sidelines of the World Bank Group and IMF Annual Meetings 2026 to discuss financial cooperation, capital market access, and regional economic initiatives.
Aurangzeb briefed his Chinese counterpart on Pakistan’s progress towards macroeconomic stability and thanked Beijing for its continued support during difficult economic periods. Lan welcomed the improvement in Pakistan’s economic position and its return to international financial markets.
The two ministers reviewed Pakistan’s first Panda Bond issuance, which carried a coupon rate of 2.5 percent and attracted strong investor demand. The Asian Infrastructure Investment Bank (AIIB) supported the issuance through credit enhancement.
Aurangzeb said Pakistan plans to continue raising funds in China’s capital market. The discussions included further Panda Bond issuances under the approved RMB 7.2 billion programme, with continued AIIB support. The ministers also discussed Pakistan’s return to the Eurobond market after a four-year gap.
Regional financial cooperation was another key topic. The two sides reviewed preparations for the upcoming Shanghai Cooperation Organisation (SCO) summit and the preceding meeting of SCO finance ministers in Islamabad. Lan expressed his intention to attend the ministerial meeting.
They also discussed a proposed SCO Development Bank aimed at strengthening regional financial cooperation. China called for Pakistan’s active participation in consultations and efforts to build agreement on the proposed institution. Aurangzeb reaffirmed Islamabad’s commitment to advancing the initiative.
On infrastructure, Lan referred to progress towards an agreement on proposed changes to the route of a China-Pakistan highway project.
Aurangzeb also briefed the Chinese finance minister on Pakistan’s engagement with Alibaba in digital transformation and artificial intelligence skills development. He reiterated the government’s commitment to implementing the cooperation framework and expanding collaboration in these areas.
