Government considering Eurobond, sukuk and panda bond options as macro indicators improve
Pakistan is preparing to re‑enter international sovereign debt markets in 2026 after a hiatus of about four years, Finance Minister Muhammad Aurangzeb told Bloomberg, reflecting progress on fiscal and external fronts.
According to the report, the government will soon issue a request for advisers to support its planned return to the global bond market. Aurangzeb, speaking during the World Economic Forum Annual Meeting 2026 in Davos, said authorities are still assessing whether the next issuance will take the form of a dollar, euro or sukuk bond. He also mentioned that the country’s first‑ever panda bond is being prepared for launch in the coming weeks.
Aurangzeb said Pakistan had “consolidated our gains in terms of macroeconomic stability” and pointed to improvements in key economic indicators, including inflation, interest rates, the fiscal position and the current account, adding that the overall “direction of travel has clearly improved,” as quoted by Bloomberg.
The report noted that Pakistan had been effectively shut out of the global bond market since 2022, but regained footing after implementing fiscal measures under programmes with the International Monetary Fund (IMF).
The finance minister said there is no immediate pressure on the rupee, according to the report, and described macroeconomic stabilisation as accompanied by long‑delayed structural reforms, including the sale of government‑owned companies and expansion of the tax base
According to Bloomberg, in the wake of recent privatisation activity, Pakistan is now seeking to sell a stake in the Roosevelt Hotel in New York after the successful privatisation of Pakistan International Airlines (PIA). Aurangzeb said the government intends to shift towards export‑led growth to avoid the import‑driven expansions that have previously contributed to balance‑of‑payments issues.
Aurangzeb underscored that reform momentum must continue, saying “We have to stay the course on reforms… That’s the only way to move toward sustainable growth,” as reported by Bloomberg.
The envisioned return to the international bond market would mark Pakistan’s first sovereign issuance since 2022, underscoring the country’s effort to strengthen access to global financing sources.
Reference Link:- https://profit.pakistantoday.com.pk/2026/01/20/pakistan-to-re-enter-global-bond-market-in-2026-plans-to-launch-countrys-first-ever-panda-bond/