Pakistan is planning to launch new Eurobonds, Sukuk bonds, and its first dollar-settled, rupee-linked bonds. Finance Minister Muhammad Aurangzeb announced the plan during the Pakistan Banking Summit 2026 in Karachi. The move comes after the successful launch of the Pakistan First Panda Bond, as the government continues to expand its funding options. Companies have already been invited to submit proposals for the new bond issues.
Pakistan Plans First Dollar-Settled Rupee Bonds, New Sukuk and Eurobond Issues
The primary motive is to return to international markets and manage its foreign debt effectively. Borrowing will take place in order to pay off its debts for an extended period.
What Are Dollar-Settled Rupee Bonds?
These new securities will offer international investors an opportunity to invest in the Pakistani rupee. But all payments would be made in US dollars rather than Pakistani rupees. It becomes easy for foreign investors to make investments as they need not deal in the local currency of Pakistan. Moreover, it allows Pakistan to get more foreign investment.
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Most of the Money Will Replace Old Debt
Finance Minister Muhammad Aurangzeb said these bonds are mainly intended to replace existing debt rather than add new borrowing. The government’s goal is to improve the management of Pakistan’s current debt. More details about the debt replacement plan will be shared as the process moves forward. As Pakistan also focuses on infrastructure projects such as EV Charging Stations in Pakistan, the government continues to support long-term economic and development goals.
Pakistan Returned to Global Markets This Year
After an interval of four years, Pakistan made its return to the international market for issuing bonds. Pakistan issued a Eurobond for $750 million in April 2026. The issue attracted high interest among investors. Since there was high demand for the bond, the government decided to increase the size of the bond issuance.
Moreover, Pakistan also made its debut in issuing a Panda bond for $250 million in May 2026. This issue attracted five times the demand of the supply size. Moreover, this also assisted Pakistan in securing one of its lowest borrowing costs on a three-year government bond.
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Government Wants More Funding Options
Now, the government plans to issue various forms of bonds to lure more investors from abroad. This is one of the medium-term strategies being undertaken by the government to raise funds following the improvement in the economic situation of Pakistan through the International Monetary Fund (IMF) program of $7 billion. It is believed that the issuance of various investment forms would enable Pakistan to lure more foreign investors and strengthen its debt structure.
According to the finance minister, the bond issue is part of a long-term strategy to enhance the profile of the nation’s debt. The idea is not to add to the nation’s foreign debt burden but rather to find other ways of financing as opposed to borrowing through loans. If the plan succeeds, the nation will be able to access more money from international financial markets. News source eTimes Pakistan.
