Pakistan is preparing to return to international bond markets after nearly four years, according to Bloomberg. Finance Minister Muhammad Aurangzeb announced that the government will soon invite proposals from financial advisers to explore various instruments, including a US dollar bond, a euro bond, an Islamic sukuk, and Pakistan’s first panda bond, which is expected to launch in the coming weeks.
Speaking on the sidelines of the World Economic Forum in Davos, Aurangzeb highlighted that Pakistan’s leadership is actively engaging with global investors, emphasizing opportunities in minerals, agriculture, and technology sectors. He noted that the country has stabilized its macroeconomic position after years of volatility, with inflation falling from nearly 40 percent to single digits, interest rates trending downward, improvements in the current account, and a return to a primary fiscal surplus.
The finance minister added that foreign exchange reserves are expected to cover around three months of imports by the end of the current fiscal year, a key benchmark for external stability. The rupee has remained largely stable for the past 18 months, supported by strong remittances, growth in services exports, and a healthier overall balance of payments.
Aurangzeb also emphasized that economic stabilization has been accompanied by long-pending structural reforms, including privatization and tax reforms. Looking forward, the government aims to transition from repeated import-led growth cycles to an export-led and investment-driven growth model, reducing balance-of-payments pressures and fostering sustainable development in Pakistan’s economy.
