Pakistan eyes Panda Bond return

ISLAMABAD: Pakistan is likely to return to the international bond market as the federal government planned to issue bonds worth $1 to 5 billion, ARY News reported citing sources.

The government would issue Panda bonds worth $300 million in the Chinese market to mark the beginning of Pakistan’s return to the international bond market.

The bonds will be issued after the approval of a new loan programme from the International Monetary Fund (IMF). The government will also approach commercial banks in China and other financial markets.

The sources within the Ministry of Finance said that the federal government is also planning to issue Eurobonds in the next fiscal year (2025-2026).

The issuance of these bonds is aimed at paying off external debts and improving Pakistan’s credit rating.

Earlier in April, Pakistan repaid $1 billion in Eurobonds as a scheduled payment ahead of seeking a long-term bailout from the International Monetary Fund (IMF).

The bond, launched in 2014 and repaid on Friday, was maturing this month.

“The payment was made to the agent bank for onward distribution to the bond holders,” the State Bank of Pakistan said in a statement.