ISLAMABAD: Pakistan is preparing to return to the international bond market after a gap of four years, signaling renewed confidence in its economic outlook following a period of financial stress.
Finance Minister Muhammad Aurangzeb said the government will seek proposals from financial advisers in the coming weeks as it evaluates options for issuing a dollar-denominated, euro, or Islamic sukuk bond. He added that preparations are also underway for Pakistan’s first-ever panda bond, which would be issued in the Chinese market.
Speaking on the sidelines of the World Economic Forum in Davos, Aurangzeb said Pakistan has made progress in restoring macroeconomic stability, citing declining inflation, an improved fiscal position, and a more stable external account.
Pakistan has largely remained absent from global bond markets since 2022, after facing acute balance-of-payments pressures that led to successive financing arrangements with the International Monetary Fund. Since then, authorities have implemented fiscal tightening measures and structural reforms aimed at stabilizing the economy.
According to the finance minister, foreign exchange reserves are expected to reach levels equivalent to three months of import cover by the end of the current fiscal year, while the rupee has remained broadly stable amid stronger remittance inflows and growth in services exports.
Aurangzeb said the government is continuing with reforms focused on expanding the tax base, restructuring state-owned enterprises, and encouraging private sector participation. He noted that Pakistan aims to shift toward export-led growth to reduce reliance on import-driven expansions that have previously strained the economy.
Officials say access to global debt markets is seen as an important step in diversifying financing sources as Pakistan seeks to attract foreign investment in sectors such as minerals, agriculture, and technology.
