Aurangzeb hailed the initiative as a key step in Pakistan’s broader strategy to re-engage global capital markets and lure foreign investment
MM Report
DAVOS: Finance Minister Muhammad Aurangzeb outlined the government’s intentions during an interview with Bloomberg at the World Economic Forum in Davos, emphasizing that international financial advisers would be appointed in the coming weeks to guide a new bond issuance.
Aurangzeb described the initiative as part of a wider strategy to reconnect Pakistan with global capital markets and attract international investment. For the first time, he said, the country was also preparing to issue panda bonds, denominated in Chinese yuan, offering a direct route for Chinese and other international investors to participate in Pakistan’s financial markets.
The minister suggested that the move reflected a more confident economic outlook and a desire to diversify funding sources amid a period of cautious global market recovery. He highlighted that inflation, which had previously soared to nearly 40%, had now fallen to single digits, relieving households and businesses of extreme price pressures and providing room for more stable economic planning.
This, the FinMin argued, was a critical factor in restoring confidence among investors and international creditors. Aurangzeb also noted that Pakistan’s improved fiscal management and economic reforms had led to upgrades by major international credit rating agencies, including Moody’s, Standard & Poor’s and Fitch. He described these upgrades as confirmation of the country’s strengthened economic fundamentals and more predictable fiscal trajectory.
The announcement is likely to be closely watched by global investors, particularly in Asia and the Middle East, who have previously been cautious about Pakistan’s market due to political uncertainties and high inflation. Analysts suggested that successful re-entry into the bond market could bolster reserves, support infrastructure projects, and signal to the world that Pakistan is committed to sustained economic reform and financial stability.
This step comes amid broader government efforts to stabilize the economy and improve investor sentiment, signaling that Pakistan is ready to reclaim a more prominent role in international finance.
