Finance Minister Muhammad Aurangzeb has stated that Pakistan is preparing a wide-ranging external financing strategy, including Eurobonds, Islamic sukuk, commercial loans, and yuan-denominated debt to ease pressure on foreign reserves and an upcoming repayment of $3.5 billion to the United Arab Emirates.
The country’s reserve position currently covering around 2.8 months of imports and remains stable but is being closely managed to avoid stress on its $7 billion International Monetary Fund program.
Aurangzeb said the government is considering whether adjustments to the IMF framework could be discussed if economic disruptions linked to the Middle East war persist.
To diversify funding sources, Pakistan is preparing to launch its first Panda bond worth $250 million next month, part of a planned $1 billion program supported by multilateral institutions including the Asian Development Bank and the Asian Infrastructure Investment Bank.
The government also expects strong external inflows, including about $41.5 billion in remittances during the current fiscal year.
Aurangzeb said a Eurobond issuance is expected this year, alongside exploration of additional commercial borrowing options. He expressed confidence that debt repayments would remain manageable under current conditions.
The government is also reviewing its long-term energy security strategy. This includes establishing a strategic fuel and LPG reserve system rather than relying solely on commercial stocks.