Pakistan explores new financing options with Lazard

Pakistan is weighing other borrowing tools, such as guaranteed Sukuk, loans tied to sustainability targets and debt swaps. The stated aim is a broader funding base, better borrowing terms and a stronger sovereign credit outlook, Mettis Global reported.

Finance Minister Senator Muhammad Aurangzeb met a Lazard delegation at the margins of the World Bank Group and IMF Annual Meetings 2026 in Bangkok. He welcomed the proposed options and pointed to the country regaining access to international capital markets, with more issuances planned, including Panda bonds. Aurangzeb also called for tight budget control, keeping to the medium-term borrowing plan and early preparation to exploit favourable conditions.

Talks also covered sovereign rating advisory work, policy predictability and steps to build economic resilience. Both sides explored routes toward a BB rating category, and follow-up coordination will run through the Debt Management Office and the State Bank of Pakistan. Lazard has proposed drafting a short note setting out its suggestions.