Islamabad (HRNW)- Federal Finance Minister Muhammad Aurangzeb has said Pakistan is preparing to return to international capital markets and plans to raise financing globally to reduce its dependence on bilateral loans.
The finance minister said Pakistan is considering issuing $1 billion to $2 billion in Eurobonds during the current fiscal year, while consortiums of banks have already been appointed to facilitate the issuance of Eurobonds and Sukuk in international markets.
He said Pakistan is also preparing to issue $750 million in Chinese yuan-denominated Panda Bonds. The government’s priority is to increase exports, reduce reliance on imports and shift the economy from aid toward trade and investment.
Aurangzeb said constructive progress has been made on a proposed $10 billion swap line with the United States, which he described as a positive signal for private investors. Pakistan also aims to expand trade and investment ties with the US, with institutions such as the US Export-Import Bank and DFC potentially playing an important role.
According to the finance minister, Pakistan’s trade deficit reached $39.5 billion in the year ending June, while total external debt stood at $129.7 billion, with China accounting for 23 percent. He said Pakistan is not currently seeking additional financing from China.
Aurangzeb added that S&P has upgraded Pakistan’s credit rating to B, while the government is targeting a B+ rating within the next 12 months and ultimately aims to achieve a double-B rating.
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