Finance Minister Muhammad Aurangzeb announced that Pakistan is preparing to re-enter the international bond market for the first time in four years. Speaking at the World Economic Forum in Davos, Aurangzeb confirmed the government will invite international investment banks to submit proposals for underwriting a combination of dollar, euro, and sukuk bonds. The primary focus is a landmark $1 billion “Panda Bond” program, with an initial tranche of $250 million aimed at tapping China’s domestic yuan market to diversify external financing.
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The move signals growing investor confidence as Pakistan’s economy stabilizes under its $7 billion IMF program. Over the last year, inflation has plunged from a peak of nearly 40% to 5.6% in December 2025, prompting the State Bank to cut interest rates to 10.5%. International rating agencies, including Moody’s (Caa1), Fitch (B-), and S&P (B-), have all upgraded the country’s credit ratings, citing improved foreign exchange reserves, which now stand at approximately $16 billion.
Pakistan plans to return to the global bond market after four years, underscoring its progress in economic stabilization after coming close to a default just a few years ago https://t.co/axOqmb2dms
— Bloomberg (@business) January 20, 2026
Parallel to the bond launch, the government is accelerating its privatization agenda. Following the successful sale of Pakistan International Airlines (PIA) last month, officials have now invited bids for a financial adviser to redevelop New York’s iconic Roosevelt Hotel. Instead of an outright sale, Pakistan plans a $4 billion joint venture to transform the site into a 60-story high-rise, a move expected to triple the value of the state’s stake. These reforms aim to shift the nation toward sustainable, export-led growth and reduce its long-term debt burden.
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