The PANIC Pipeline (PAPI) is an open-source Python-based software package designed for the automated reduction of near-infrared imaging data from the PAnoramic Near-Infrared Camera (PANIC) at the Calar Alto Observatory (CAHA). Initially developed for the HAWAII-2RG detectors of PANIC, PAPI has been updated to support the HAWAII-4RG detector installed in 2025. It provides a comprehensive suite of tools for processing raw astronomical images, including basic calibration, cosmic-ray removal, crosstalk correction, sky subtraction, non-linearity correction, and astrometric calibration. PAPI also includes the PANIC Quick-Look Tool (PQL), a graphical user interface for prompt data quality assessment during observations. Available under the GNU General Public License, PAPI is a versatile tool optimized for broadband imaging of extragalactic sources, such as galaxy surveys and cluster studies.