Pakistan eyes Sukuk, Panda bonds to diversify external financing

Mettis Global reported that Pakistan intends to widen external funding using Sukuk and Panda bonds, alongside other instruments, after a $3bn Eurobond sale in September. The aim, as described, is to bolster debt sustainability and advance toward a BB sovereign rating. The plan featured in talks between Finance Minister Senator Muhammad Aurangzeb, the State Bank of Pakistan Governor and US Treasury official Erin Browne at the margins of the World Bank Group and IMF Annual Meetings 2026.

Talks centred on the economic outlook, the reform agenda and external funding requirements. Aurangzeb cited headway in the IMF arrangement, tax changes, three straight years of primary surpluses and reserves near $21.6bn. The talks also weighed the effects on energy availability, price levels and food security, along with steps to keep essential goods flowing before higher winter demand.

He stressed export-led growth, greater IT exports and better competitiveness in goods exports, which he linked to debt sustainability. He also raised the privatisation agenda, airport outsourcing plans, engagement with Boeing and possible US EXIM Bank financing, and thanked Washington for its continued support.