Pakistan cabinet first time approved launching of Panda Bond in Chinese-denominated Yuan currency.According to the Pakistani media, the possible transaction size will be equivalent to $500 million in two different tranches in order to finance its yawning trade deficit with China.Pakistan’s trade deficit with China stood at around 12 billion dollars per annum and it is asking for Asean level tariff reduction on its exportable items. 

Through this bond, Pakistan to raise loans from China’s capital markets, as the country moved a step forward to give the Chinese currency a status at par with the US dollar.

What is panda bond

• This Chinese currency is the Renminbi currency bond which is issued by non-Chinese and sold in China.
• In the year 2005, the first Pandava bond was issued by International Finance Corporation and Asian Development Bank in the year