Pakistan eyes Sukuk, Panda bonds to diversify external financing

October 16, 2026 (MLN): Pakistan has outlined plans to diversify its external financing sources through Sukuk, Panda bonds and other instruments, following its $3bn Eurobond issuance in September, as the government seeks to strengthen debt sustainability and support progress towards a BB sovereign credit rating.

The strategy was discussed during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, accompanied by the Governor of the State Bank of Pakistan (SBP), and Ms. Erin Browne, Under Secretary for International Affairs at the US Department of the Treasury, on the sidelines of the World Bank Group–IMF Annual Meetings 2026.

The discussions covered Pakistan’s economic outlook, ongoing structural reforms and external financing needs. The Finance Minister highlighted progress under the IMF programme, tax reforms, three consecutive years of primary surpluses and foreign exchange reserves of approximately $21.6bn.

The meeting also addressed the implications of regional conflict for energy supplies, inflation and food security. Both sides discussed measures to maintain the availability of essential supplies and prepare for increased winter demand.

Aurangzeb underscored the importance of export-led growth, higher IT exports and improved competitiveness in goods exports to strengthen Pakistan’s economic position and ensure debt sustainability.

The Finance Minister also discussed the government’s privatization agenda, plans for airport outsourcing, engagement with Boeing and potential financing from the US EXIM Bank.

He expressed deep appreciation for the continued support extended by the United States.

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