Pakistan Plans to Raise $2 Billion Through International Bonds in FY27

Pakistan plans to raise $2 billion through international bonds in fiscal year 2026-27, including Eurobonds, Sukuk, and Panda bonds, even as the government has made no provision for the Saudi Oil Facility in the upcoming budget.

According to a report by a national daily, the government expects to secure $23.378 billion in external financing next year from multilateral and bilateral lenders, commercial borrowing, and international debt markets.

The report stated that the planned bond issuance reflects Islamabad’s intention to maintain its presence in global capital markets and remain engaged with international investors.

The budget projects zero inflows under the Saudi Oil Facility for FY27, compared with revised estimates of $1 billion for the outgoing fiscal year. The facility provided by Saudi Arabia expired in April 2026, and although Pakistan has sought its continuation, no amount has been included in the new budget.

Saudi Arabia, however, has increased its deposits with the State Bank of Pakistan to $8 billion, while Chinese deposits amount to another $4 billion, taking total bilateral deposits at the central bank to $12 billion.

Pakistan expects to receive $4.866 billion from multilateral lenders in FY27, including $1.68 billion from the Asian Development Bank, $1.43 billion from the World Bank’s International Development Association, $1 billion in short term financing from the Islamic Development Bank, and $530 million from the International Monetary Fund under its climate-related Resilience and Sustainability Facility.

The government has also budgeted $2.35 billion in foreign commercial loans and expects to mobilize $1.122 billion through Naya Pakistan Certificates. Bilateral inflows are projected at $400.42 million, including $97.64 million from China, $47.18 million from Saudi Arabia, and $23.89 million from the United States.