Pakistan signals return to global capital markets after four years

April 16, 2026 (MLN):  Pakistan signaled its intention to return to international capital markets after a gap of around four years, with plans to issue rupee-linked, dollar-denominated instruments under its Global Medium-Term Note (GMTN) programme.

The move comes as part of broader efforts to strengthen external financing, alongside preparations for the country’s first Panda Bond issuance supported by agreements with multilateral lenders, according to a press release issued.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, shared these developments during a meeting with senior representatives of JP Morgan Chase on the sidelines of the World Bank–IMF Spring Meetings in Washington, D.C.

He also briefed the delegation on counter-indemnity agreements signed with the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), expressed appreciation for financial support from the Kingdom of Saudi Arabia, and assured that the financing proposals and market options discussed would be carefully reviewed.

 In a separate engagement on the sidelines of the meetings, finance minister Aurangzeb held discussions with senior leadership of Franklin Templeton, where he said Pakistan would soon initiate requests for proposals (RFPs) to appoint lead managers for potential issuances under the GMTN programme.

He emphasized that any return to global markets would be “selective” in pricing and timing, reflecting sensitivity to global interest rate trends and investor sentiment.

The finance minister described the planned market re-entry as a potential turning point in Pakistan’s external financing strategy, aimed at rebuilding investor confidence after a prolonged period of economic strain and reliance on bilateral and multilateral support. A successful issuance, he noted, could help diversify funding sources and signal improving macroeconomic stability.

He also outlined progress on a broad privatization agenda, stating that nearly 30 state-owned enterprises have been transferred to the Privatization Commission.

The government is advancing plans to outsource major airports, including those in Islamabad, Karachi, and Sialkot, and is exploring the sale of electricity distribution companies to improve efficiency and reduce fiscal pressures.

Highlighting a shift in policy on digital assets, the minister confirmed the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) and the issuance of No Objection Certificates to global platforms such as Binance.

He added that the State Bank of Pakistan has withdrawn its 2018 restrictions on the use of banking channels for cryptocurrency transactions, indicating a more accommodative regulatory approach.

The finance minister also expressed interest in collaborating with Franklin Templeton on capacity-building initiatives, including structured training programmes for officials from the Ministry of Finance and the State Bank of Pakistan, as part of efforts to strengthen institutional expertise in managing modern financial markets.

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