Panda Bond Delay Hits Medical Complex Project in Islamabad
The panda bond delay has disrupted plans to raise $250 million from China’s capital market. The funding aimed to support green development projects in Islamabad. However, legal hurdles and land disputes have slowed the process. Officials confirmed that the bond issuance now faces administrative challenges. As a result, project timelines may shift further in the coming months.
Land Dispute Raises New Concerns
One of the main issues involves the Jinnah Medical Complex project. Initially, authorities selected land in Sector H-16 for construction. Later, private ownership claims surfaced and raised serious concerns. Therefore, financial guarantors flagged the location as risky. The government has now moved the project site to Sector H-11 to avoid further legal complications.
Telemetry Project Also Faces Objection
In addition, a telemetry monitoring project in Azad Kashmir faced objections. An international policy does not allow funding in disputed regions. Consequently, authorities removed the location from the project list. The telemetry system planned real-time discharge monitoring at 26 sites. This initiative aimed to improve water resource management across the Indus Basin.
Internal Differences Delay Financing
Meanwhile, disagreements within the finance ministry have also slowed progress. The External Finance Wing raised concerns about loan agreements and underwriter selection. Officials believe the process lacked full bureaucratic consultation. As a result, authorities are now exploring alternative financing options. Talks continue with foreign banks to secure additional loans worth $600 million.
