Pakistan is preparing to return to international bond markets after a gap of nearly four years, Bloomberg reported.
Finance Minister Muhammad Aurangzeb said the government will shortly invite proposals from financial advisers as it weighs different instruments, including a US dollar bond, a euro bond, an Islamic sukuk and Pakistan’s first panda bond, which is expected to be launched in the coming weeks.
Speaking on the sidelines of the World Economic Forum in Davos, Aurangzeb said Pakistan’s leadership is actively engaging global investors, with a focus on minerals, agriculture and technology.
The finance minister said Pakistan has stabilised its macroeconomic position after years of volatility. Inflation has eased from a peak of nearly 40 percent to single digits, interest rates are on a downward path, the current account has improved and the government has returned to a primary fiscal surplus.
The finance minister said foreign exchange reserves are expected to rise to cover around three months of imports by the end of the current fiscal year, a level widely seen as a benchmark for external stability. He added that the rupee has remained largely stable for the past 18 months, supported by strong remittances, growth in services exports and a healthier balance of payments.
Aurangzeb said economic stabilization has been accompanied by long-pending structural reforms, including privatisation and tax reforms.
Looking ahead, the finance minister stressed that Pakistan aims to move away from import-driven growth cycles and shift toward export-led and investment-driven growth.
Looking ahead, Aurangzeb said the government aims to shift away from repeated import-led growth cycles that have triggered balance-of-payments pressures, with policy now focused on export-led and investment-driven growth.