Pakistan explores new financing options with Lazard

October 16, 2026 (MLN): Pakistan is exploring alternative financing instruments, including guaranteed Sukuk, sustainability-linked loans and debt swaps, to diversify funding sources, improve borrowing terms and strengthen its sovereign credit outlook.

The proposals were discussed during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and a delegation from Lazard on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand.

The Finance Minister welcomed the proposed financing options and highlighted Pakistan’s restored access to international capital markets, alongside plans for further issuances, including Panda bonds.

He stressed the need for fiscal discipline, adherence to the medium-term financing strategy and timely preparation to capitalize on favorable market conditions.

Discussions also covered sovereign rating advisory services, policy predictability and measures to strengthen economic resilience, with both sides considering pathways to progress towards the BB rating category.

It was agreed that further coordination would take place through the Debt Management Office and the State Bank of Pakistan (SBP). Lazard also proposed preparing a brief note outlining its recommendations.

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