Pakistan Prepares to Return to Global Bond Market After Four Years, Says Finance Minister

Davos, Switzerland: Finance Minister Muhammad Aurangzeb has announced that Pakistan is preparing to return to the global bond market after four years, with key economic indicators—including inflation, interest rates, fiscal deficit, and the current account balance—moving in a positive direction.

Speaking to Bloomberg during the World Economic Forum in Davos, Aurangzeb said the government will issue a proposal in the coming weeks to select financial advisers for the upcoming bond issuance. Officials are reviewing options for issuing dollar, euro, or Islamic Sukuk bonds. In addition, Pakistan is also preparing to introduce its first-ever Panda Bond in its history.

Aurangzeb noted that foreign exchange reserves are expected to reach a level equivalent to three months of imports by June, meeting international standards. He added that there is currently no immediate pressure on the rupee, as the balance of payments has improved, remittances have increased, and services exports are rising. The rupee has remained stable for approximately the past 18 months.

This move signals Pakistan’s efforts to strengthen its position in global financial markets while leveraging improving domestic economic conditions.