- External financing to rely on multilateral and bilateral sources.
- Panda bond program of $ 1 billion established, the first broadcast in fiscal year 26.
- In progress preparatory work for the launch of sustainable bonds.
Islamabad: Pakistan debts and external liabilities, currently about $ 130 billion, are highly concentrated in five major currencies, the US dollar only representing almost 58% of the total load, The news reported Thursday
“The portfolio of external debts is mainly labeled in a few major currencies. The US dollar leads with a share of 57.8%, monitoring of special drawing rights (SDR) at 29.88%, Chinese Yuan 5.21%, Japanese yen 3.95%and Euro 2.62%”, reads the latest management strategy (DMS) 2026-2028.
The Ministry of Finance strategy stresses that external financing will continue to rely mainly on multilateral and bilateral sources offering concessional terms and longer deadlines.
However, in order to diversify, Pakistan plans to reintegrate international capital markets with new instruments, including panda bonds, sustainable bonds and euros – subject to favorable global interest rate conditions and interior economic stability.
A Panda bond program of $ 1 billion has already been created, with the first issue of 200 to 250 million dollars planned for the 20126 financial year, followed by additional medium -term slices.
Preparatory work is also underway for the launch of sustainable bonds, supported by a new sustainable financing framework, which is currently under examination of the firm. This framework will guide the structure, maturity and terms of reimbursement of all future programs of sustainable bonds.
Although access to Eurobond markets has been forced since 2022, the strategy describes a back -to -school plan on the international capital markets as conditions improve.
In the meantime, Panda obligations – titles called by the Renminbi on the Chinese market – are developed as an alternative, supporting the diversification of financing sources, reducing loan costs, reducing the refinancing of risks and improving the financial integration of Pakistan with the Chinese markets.
To actively manage exchange risks, the government intends to employ coverage instruments while developing national and interest rate markets.
Innovative options, including debt exchanges for nature, are being studied to help manage external responsibilities while aligning on climatic objectives.
The interior debt should remain the main source of government funding during the strategy period. As part of the International Monetary Fund (IMF) program, the government’s guaranteed ceiling is set at 5,600 billion rupees at the end of June 2025.
In March 2025, guarantees worth 405 billion rupees – equivalent to 0.35% of GDP – had been issued, which increased the total of the shares in circulation to 4,548 billion rupees.
These include guarantees extended to public enterprises such as TCP and Passco for funding linked to basic products.
