Govt plans new bond strategy to reduce debt rollover risks

October 14, 2026 (MLN): Pakistan is pursuing diversified financing options, including Sukuk, Panda bonds and a proposed rupee-denominated, dollar-settled international bond, to lower borrowing costs, extend debt maturities and reduce rollover risks.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb outlined the strategy while briefing investors at Standard Chartered Bank’s Sovereign Investor Roundtable on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand.

The Finance Minister cited three consecutive years of primary surpluses, a fiscal deficit at a 22-year low and sovereign rating upgrades as key developments in Pakistan’s economic progress.

He stressed the need to sustain structural reforms, maintain fiscal discipline, strengthen tax enforcement and promote investment- and export-led growth beyond the IMF programme.

Discussions also covered foreign exchange reserves, inflation, the external outlook, energy security, targeted relief and climate financing.

Muhammad Aurangzeb reaffirmed the government’s commitment to continuing reforms and further strengthening Pakistan’s sovereign credit standing.

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