Pakistan eyes international bonds to boost economic stability

ISLAMABAD: Pakistan plans to generate up to $1 billion by issuing international bonds in the fiscal year 2025/26, Finance Minister Muhammad Aurangzeb revealed in an interview with Reuters.

A significant portion of this amount, up to $300 million, will be sourced from Chinese markets.

“The first bond market we will access is the Chinese panda bond market, and our inaugural bond will raise the yuan equivalent of $250-300 million,” Finance Minister Aurangzeb stated.

This move marks Pakistan’s strategic entry into Chinese financial markets as a step towards diversifying its sources of foreign funding.

Aurangzeb also highlighted that the ministry intends to explore European and other international markets for bond issuance once Pakistan’s investment ratings show improvement. This initiative is part of a broader effort to bolster the country’s economic stability and attract foreign investment.

On Wednesday, the finance minister presented the budget for the upcoming fiscal year ending June 2025. The budget outlines the government’s financial strategy, which includes measures to support economic growth and manage the national debt.

This bond issuance plan underscores Pakistan’s commitment to securing international financial support while broadening its market reach to ensure economic resilience and sustainable growth.

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