Government considering Eurobond, sukuk and panda bond options as macro indicators improve<\/p>\n\n\n\n
Pakistan is preparing to re\u2011enter international sovereign debt markets in 2026 after a hiatus of about four years, Finance Minister Muhammad Aurangzeb told Bloomberg<\/em>, reflecting progress on fiscal and external fronts.<\/p>\n\n\n\n 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\u2019s first\u2011ever panda bond is being prepared for launch in the coming weeks.<\/p>\n\n\n\n Aurangzeb said Pakistan had \u201cconsolidated our gains in terms of macroeconomic stability\u201d and pointed to improvements in key economic indicators, including inflation, interest rates, the fiscal position and the current account, adding that the overall \u201cdirection of travel has clearly improved,\u201d as quoted by Bloomberg.<\/p>\n\n\n\n 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).<\/p>\n\n\n\n The finance minister said there is no immediate pressure on the rupee, according to the report, and described macroeconomic stabilisation as accompanied by long\u2011delayed structural reforms, including the sale of government\u2011owned companies and expansion of the tax base<\/p>\n\n\n\n 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\u2011led growth to avoid the import\u2011driven expansions that have previously contributed to balance\u2011of\u2011payments issues.<\/p>\n\n\n\n Aurangzeb underscored that reform momentum must continue, saying \u201cWe have to stay the course on reforms\u2026 That\u2019s the only way to move toward sustainable growth,\u201d as reported by Bloomberg.<\/p>\n\n\n\n The envisioned return to the international bond market would mark Pakistan\u2019s first sovereign issuance since 2022, underscoring the country\u2019s effort to strengthen access to global financing sources.<\/p>\n\n\n\n