Pakistan is preparing to return to the global bond market after a four-year hiatus. Federal Finance Minister Muhammad Aurangzeb told Bloomberg during the World Economic Forum in Davos that the government will start appointing international advisers for the bond issuance in the coming weeks. Authorities are reviewing whether to issue a dollar bond, euro bond, or sukuk, depending on which instrument is most suitable.
The finance minister also said Pakistan is preparing to issue its first “Panda Bond” in Chinese currency. The move is part of a strategy to provide direct access to global investors, particularly in the Chinese market.
Aurangzeb highlighted that inflation, which once reached nearly 40 percent, is now in single digits. Global credit rating agencies Moody’s, S&P, and Fitch have improved Pakistan’s credit rating. He added that foreign exchange reserves are expected to cover three months of imports by the end of the current fiscal year. The government aims to follow an export-led growth strategy to avoid past balance-of-payments crises.
According to Bloomberg, Pakistan has been absent from the global bond market since 2022. However, under the IMF program, fiscal discipline, tax reforms, and subsidy reductions have restored investor confidence. Economists have described the development as a positive step.
Experts say Pakistan’s return to the international bond market signals renewed confidence from global investors, which could enhance financial stability. The issuance of Panda Bonds will provide Pakistan with direct access to China’s capital market, potentially boosting investment.
Economists also noted that export-led growth, falling inflation, and rising foreign reserves reflect the positive impact of economic reforms and are expected to provide long-term benefits for the country.
