Key facts
- Pakistan aims to diversify funding sources through Asian bonds.
- Finance Minister Muhammad Aurangzeb is considering issuing more panda bonds.
- Pakistan is preparing to re-enter international capital markets.
- A Global Medium-Term Note (GMTN) programme is being established.
- Pakistan's first panda bond issuance is targeted for May.
Pakistan is actively seeking to diversify its funding sources, with Finance Minister Muhammad Aurangzeb indicating a potential for increased issuance of Chinese yuan-denominated panda bonds and exploring the Japanese market for samurai bonds. The country is preparing for a return to international capital markets after an approximate four-year hiatus.
Aurangzeb discussed Pakistan's Global Medium-Term Note (GMTN) programme with representatives from JP Morgan Chase. This programme is expected to include rupee-linked, dollar-denominated instruments in the near term. The government is also issuing requests for proposals for lead managers across three segments: Eurobonds, Islamic Sukuk, and a novel dollar-settled, rupee-linked bond.
Pakistan's inaugural Panda Bond issuance is slated for May, following the finalization of counter-indemnity agreements with the Asian Development Bank and the Asian Infrastructure Investment Bank. The Finance Minister made these remarks on the sidelines of the IMF and World Bank annual meetings in Bangkok.