Pakistan Targets Global Investors With New Bond Plan Ahead of IMF Approval

Pakistan’s Finance Minister Muhammad Aurangzeb has confirmed the launch of a Global Medium-Term Note (GMTN) program, as the country prepares to return to international debt markets while awaiting approval from the International Monetary Fund.

Speaking at the Citi Macro Forum, the finance minister said Pakistan is issuing requests for proposals for lead managers across three instruments, including Eurobonds, Islamic Sukuk, and a first-ever dollar-settled, rupee-linked bond.

He also confirmed that Pakistan has reached a Staff-Level Agreement with the IMF for the third review under the Extended Fund Facility and the second review under the Resilience and Sustainability Facility, with final approval expected in early May.

For simple context, IMF approval is critical because it unlocks funding and boosts investor confidence, which is necessary before Pakistan can successfully raise money from global markets.

The finance minister described the ongoing Middle East crisis as a major supply shock and said the government is responding through a phased approach, including coordination with the State Bank of Pakistan to manage economic impacts. He also acknowledged financial support from Saudi Arabia, which is expected to help stabilize Pakistan’s external position.

In addition, Pakistan is targeting the launch of its first Panda Bond in May, following agreements with the Asian Development Bank and Asian Infrastructure Investment Bank, as part of efforts to diversify funding sources. The finance minister said the government is also working on longer-term measures, including building strategic petroleum reserves and accelerating the shift toward renewable energy.