The government has decided to increase borrowing from international financial institutions as part of a broader strategy to stabilize the economy and foreign exchange reserves.
Officials say new funding will be raised through Eurobonds, Sukuk, and other instruments over the next three years.
According to the Ministry of Finance, the government plans to borrow more from international financial institutions to meet external financial needs and manage economic pressures.
The initiative is part of a wider mission to keep foreign exchange reserves stable and overcome economic challenges.
Three-year plan for Euro, Sukuk bonds
Authorities have prepared a plan to raise funds over three years through Eurobonds and Sukuk bonds, targeting international investors.
Bids have already been invited from foreign banks and financial institutions for issuing Eurobonds, Sukuk bonds, Green bonds, and other financial instruments.
The move signals a renewed push to access global capital markets.
Focus on low-cost borrowing strategy
Finance Ministry officials emphasized that the government aims to secure loans at low interest rates. They said the timing of borrowing will depend on market conditions, ensuring that funds are raised when rates are most favourable.
Recently, Pakistan issued Eurobonds worth $750 million at an interest rate of 7%, providing a benchmark for future borrowing.
Officials revealed that a proposal to issue dollar-settled bonds in Pakistani rupees is also under consideration. This structure could help attract international investors while managing currency risks more effectively.
To execute the plan, the government will form separate consortiums for Eurobonds and Sukuk, each consisting of up to five financial institutions.
These consortiums will act as underwriters, lead managers, and advisors for pricing, marketing, and sales. They will also be responsible for organizing investor relations and conducting roadshows to attract global investors.
Islamic finance body to join Sukuk consortium
The International Islamic Finance Corporation will be included in the Sukuk consortium. This step is expected to strengthen Pakistan’s outreach in the Islamic finance market and enhance credibility among Shariah-compliant investors.
Officials said the government has intensified efforts to raise capital from international investors, with roadshows planned to promote upcoming bond issuances.
The selected consortiums will play a key role in building investor confidence and ensuring successful fundraising.
The borrowing plan comes as Pakistan seeks to bridge external financing gaps, stabilize reserves, and navigate ongoing economic challenges.
