Pakistan is considering new ways to raise money from international investors, including bonds issued in China and financing instruments based on Islamic banking principles.
Finance Minister Muhammad Aurangzeb outlined the proposals during the Citi Macro Forum in Bangkok on October 14, according to the government’s Press Information Department.
The plans include additional Panda bonds, Sukuk and a possible international bond linked to the Pakistani rupee but settled in US dollars.
A Panda bond is borrowing raised in China’s domestic financial market. Sukuk are financing certificates structured according to Islamic finance principles.
By using different markets and instruments, Pakistan hopes to reach more investors and manage the cost of government borrowing.
The finance minister did not announce dates, amounts or interest rates for the proposed issues. The plans therefore represent possible future borrowing rather than funds already received.
Aurangzeb also discussed Pakistan’s economic performance, highlighting improvements in public finances and foreign exchange reserves.
He said the government was continuing work on tax collection, coordination with provincial authorities and reforms under its International Monetary Fund programme.
The minister expressed optimism that economic growth could reach or exceed 4% in the current financial year. That remains an outlook rather than a final growth figure.
International borrowing can provide funds for government financing needs and help spread repayments across different periods. Its benefits depend partly on how much investors charge and how the borrowed money is managed.
The proposed rupee-linked, dollar-settled bond would add another option to Pakistan’s financing strategy, although its structure and terms have yet to be confirmed.
For the government, the immediate task is to turn the financing plans into workable transactions on acceptable terms. Investors will be watching for announcements on the timing, size and cost of any new bond issues.
The proposals reflect Pakistan’s efforts to broaden its funding sources while continuing to manage existing debt and support economic stability.
Source: Press Information Department, October 14, 2026.