The Ministry of Finance has warned the public to steer clear of misleading reports on Pakistan’s sovereign financing transactions, including the Eurobond and Panda Bond issuances.
The ministry rejected recent media reports and public commentary regarding the country’s sovereign financing transactions, calling them misleading and lacking important context.
In a statement posted on X, the ministry said both the Eurobond issuance and Pakistan’s inaugural Panda Bond complied with all applicable legal, regulatory, procurement, and approval requirements.
The ministry said comparisons based only on headline coupon rates or bond tenors do not reflect how sovereign financing decisions are made.
It explained that borrowing decisions are based on multiple factors, including pricing, maturity, execution certainty, underwriting commitments, market conditions, total financing costs, credit spreads, timing, and consistency with Pakistan’s Medium-Term Debt Management Strategy (MTDS).
The ministry said it selects the financing option that offers the best overall balance between cost, risk, execution certainty, and strategic financing objectives rather than relying on a single pricing indicator.
It also dismissed suggestions that administrative matters related to institutional appointments had affected the legality or governance of the transactions. It said the Debt Management Office and Finance Division possess the necessary expertise to manage sovereign financing in full compliance with applicable laws and procedures.
The ministry further warned that the spread of inaccurate or misleading information could undermine investor confidence, damage Pakistan’s reputation in international capital markets, increase future borrowing costs, and adversely affect the country’s financing strategy.
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