Pakistan plans to return to the global bond market after a gap of four years, reflecting the country’s progress towards economic stabilisation after averting a last-minute default just a few years ago, reported Bloomberg on Tuesday.
Pakistan will issue a proposal for advisers in the coming weeks, Finance Minister Muhammad Aurangzeb told the international media outlet.
The minister, who is in Davos to attend the World Economic Forum (WEF) Annual Meeting 2026, shared that the government is still assessing whether to issue a dollar, euro or sukuk bond, and also preparing to launch the country’s first-ever panda bond within weeks.
“We have consolidated our gains in terms of macroeconomic stability,” Aurangzeb told Bloomberg. “If you look at every key indicator — inflation, interest rates, the fiscal position and the current account — the direction of travel has clearly improved.”
As per the report, Pakistan had effectively been shut out of the bond market since 2022 but has regained its footing after adopting fiscally prudent measures as part of bailout programs with the International Monetary Fund (IMF).
The report noted that Pakistan’s inflation, which peaked at about 40%, has fallen to single digits. Global credit rating agencies, including Moody’s, S&P and Fitch, have upgraded Pakistan’s ratings.
“Foreign-exchange reserves are expected to reach three months of import cover in the year ending June, a level seen as a global benchmark,” Aurangzeb said.
The finance minister also sees no immediate pressure on the rupee, read the report.
Aurangzeb said macroeconomic stabilisation has gone hand in hand with long-delayed structural reforms, including the sale of government-owned companies and an expansion of the tax net.
After the successful privatisation of Pakistan International Airlines (PIA) last month, the government is now seeking to sell a stake in the Roosevelt Hotel in New York.
Aurangzeb said the government seeks to shift toward export-led growth to avoid the import-driven expansions, which have created balance-of-payments crises.
“We have to stay the course on reforms,” he said. “That’s the only way to move toward sustainable growth.”
