Govt plans new bond strategy to reduce debt rollover risks

Pakistan is working on a wider mix of funding tools, including sukuk, Panda bonds and a planned international bond that would be issued in rupees but settled in dollars, Mettis Global reported. The objective is to lower borrowing costs, push out debt maturities and lessen the risks tied to rolling over existing debt.

Finance Minister Senator Muhammad Aurangzeb laid out the approach to investors at a Sovereign Investor Roundtable hosted by Standard Chartered Bank, held on the margins of the World Bank Group and IMF Annual Meetings 2026 in Bangkok. He highlighted three straight years of primary surpluses, a fiscal deficit that has fallen to a 22-year low and upgrades to sovereign ratings as signs of progress.

He also urged continued structural reforms, fiscal discipline, tougher tax enforcement and growth led by investment and exports, extending beyond the IMF programme. Discussion at the event also touched on forex holdings, inflation, the external position, energy security, targeted assistance, along with climate financing, and he restated the government's commitment to reforms and to strengthening its sovereign credit standing.