Pakistan is expected to access Chinese capital markets for the first time through a yuan-denominated bond next week, Finance Minister Muhammad Aurangzeb said on Saturday, as Islamabad seeks to shore up foreign reserves and diversify funding sources.

“God willing, next week you will hear good news that for the first time, we will be accessing Chinese capital markets through Panda bond,” said Aurangzeb, addressing a press conference alongside Minister for Petroleum Ali Pervaiz Malik.

The planned $250 million issue — part of a broader $1 billion programme — will be backed by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

Pakistan has increasingly turned to friendly nations and multilateral lenders to stabilise its economy after a prolonged balance-of-payments crisis pushed the country to the brink of default in 2023.