Compared to other Central American Cities, Panama City has a real good night life. There is Discotheques and bars all over the city but there is a huge Party zone located only a 5 minutes walk from ZULYS Hostel in the CALLE URUGUAY AREA. There is plenty of places reaching from Salsa and Merengue to Electronic music and Rock Music.
The best days to go out in Panama are Thursday, Friday and Saturday. Sunday and Monday are very quiet.
Good place for concerts and other cultural events is LA CASONA in Casco VIEJO. If you just want to have a beer and talk to friends, EL KORCHO (also Karaoke) y TABERNA 21 (Spanish bar, sometimes Live music) in Via Argentina, La Terrazza right next to Restaurante Costa Azul and The Istmo Brew Pub in Via Veneto are good addresses.