Panning, as we mostly use the term, means to swing the camera around an axis, to change the angle, in which we point the optical axis.
When you use the shift function to cover a larger angle, you are effectively using the larger image circle of the shift lens, merging two images into one, to create an image as if taken with a larger sensor size. When doing this in a way that returns the lens to its original position before taking the second shot, by shifting the camera an equal amount in the opposite direction, you will address parallax issues within the scene - one image lens shifted left, camera right, and the other lens shifted right and camera left.
The result, when using a shift lens with a miniature format camera is the same as using the same lens with a medium format camera, cropping top and bottom to leave a 24 mm strip from the centre. You achieve a rectilinear wide angle image; call it panorama if you wish, but the issue that above described methods will address is parallax errors when panning, sweeping an angle by turning the panorama head.
When the axis around which we turn the camera intersects the entrance pupil of the lens, no parallax errors will occur. There will of course be other errors that we address with software. Either, the image will have to be corrected from the rectilinear imaging of the lens into the cylindrical shape of the panorama, or, we could snip out a part of the panorama and correct it to a rectilinear image. Panorama stitchers may also stretch and shrink to cope with lens distortions. Another way to cope with distortions is to merge rather narrow strips from many more images taken with small angular difference.