Govt rejects misleading reports on Eurobond, Panda Bond

July 13, 2026 (MLN): The government has categorically rejected recent media reports on Pakistan's sovereign financing transactions, including the Eurobond and the country's debut Panda Bond issuance, terming them misleading and based on incomplete information that omits critical facts and context.

The Finance Division said both transactions were carried out in full compliance with applicable legal, regulatory, procurement and approval requirements, according to Ministry of Finance post on X.

According to the statement, comparisons drawn merely on headline coupon rates or tenors present a distorted picture, as sovereign financing decisions involve a wide-ranging evaluation of pricing, tenor, execution certainty, underwriting commitments, timing, all-in transaction costs, credit spreads over benchmarks, prevailing market conditions, and consistency with the Medium-Term Debt Management Strategy (MTDS).

Government, the ministry noted, opts for the financing avenue that provides the best combination of pricing, tenor, execution certainty, timing and risk management, in line with the MTDS framework.

On concerns linked to institutional appointments, the ministry clarified that administrative matters of this nature carry no bearing on the legality or governance of sovereign financing deals.

It maintained that the Debt Management Office and Finance Division possess adequate capacity and expertise to handle such transactions in accordance with all relevant laws and procedures.

The ministry cautioned that circulating inaccurate or misleading narratives could erode investor confidence, harm Pakistan's standing in international capital markets, push up future borrowing costs, and undermine the country's broader financing objectives.

It called for public discourse to be grounded in verified facts and responsible reporting.

The Finance Division reaffirmed its commitment to transparency, professionalism and prudent debt management, stating that sovereign financing decisions would continue to be guided strictly by Pakistan's economic and strategic interests.

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