ISLAMABAD, April 28, 2026 – Pakistan is preparing to tap international capital markets with a diversified fundraising strategy, Finance Minister Muhammad Aurangzeb said on Tuesday, as the country moves toward commercial financing and away from reliance on bilateral support.
Speaking at the EU-Pakistan High Level Business Forum in Islamabad, Aurangzeb said the issuance of a $250 million Panda bond denominated in Chinese yuan was in its final stages and could be launched by mid-May.
“We are in the final stages of the inaugural Panda bonds… roughly $250 million in RMB,” he said, adding that Pakistan aims to broaden its investor base through new instruments.
The government has also launched a Global Medium-Term Note (GMTN) programme to access Eurobonds, Sukuk, and a proposed dollar-settled rupee bond over the next two to three years, targeting institutional investors seeking diversified exposure.
Aurangzeb’s comments come as State Bank of Pakistan Governor Jameel Ahmad projected foreign exchange reserves to exceed $18 billion by June, equivalent to about three months of import cover — a key international benchmark.
Pakistan’s external position has recently been bolstered by $3 billion in deposits from Saudi Arabia, enabling the country to repay $3.45 billion owed to the United Arab Emirates. Aurangzeb said the government does not plan to seek further bilateral assistance and is instead shifting toward market-based borrowing.
“Pakistan is moving towards commercial rather than bilateral financing,” he told reporters.
On multilateral support, the minister expressed confidence that Pakistan would receive a $1.2 billion tranche from the International Monetary Fund next month, while consultations for the upcoming federal budget are underway.
He also emphasized the importance of ensuring smooth repatriation of profits and dividends to attract foreign investment and convert macroeconomic stability into sustainable growth.
On domestic reforms, Aurangzeb acknowledged challenges in tax administration but said progress had been made in improving the tax-to-GDP ratio through base broadening and the use of artificial intelligence to curb leakages.
Despite ongoing Middle East tensions affecting energy infrastructure, the minister ruled out any immediate risks to food security or fertiliser supply, adding that remittance inflows, including from the UAE, remained stable.
Earlier this month, Pakistan returned to global markets after a four-year gap, raising $500 million through a Eurobond under the GMTN programme, signaling renewed investor confidence despite global uncertainties.