Pakistan eyes new Sukuk, Panda bonds with Sharjah Islamic Bank

October 17, 2026 (MLN): Pakistan has discussed potential Sukuk issuance, further Panda bond offerings and MIGA-backed financing with Sharjah Islamic Bank as part of efforts to diversify funding sources, extend debt maturities and ease repayment pressures without increasing overall external debt.

The discussions took place between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and a Sharjah Islamic Bank delegation on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand.

The proposed financing avenues also included rupee-denominated, dollar-settled instruments and the potential tokenization of Eurobonds. The two sides reviewed rising global funding costs and the need to replace expensive short-term borrowing with longer-term financing to reduce repayment concentration.

Muhammad Aurangzeb highlighted improvements in Pakistan’s fiscal and external indicators, strengthening foreign exchange reserves, credit rating upgrades and progress under the IMF programme. The bank’s delegation reaffirmed its support for Pakistan and expressed readiness to participate in a Sukuk issuance.

Investment opportunities in refinery upgrades, power distribution privatization and airport outsourcing also came under discussion.

The meeting further explored the development of capital market benchmarks through financial institution issuances and expanding lending to businesses, small and medium-sized enterprises (SMEs) and the agriculture sector.

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