Pakistan is preparing to re-enter the global bond market after a four-year absence, as the government points to improving macroeconomic indicators and renewed investor confidence following a period of financial stress.
Finance Minister Muhammad Aurangzeb said on Tuesday that Pakistan is laying the groundwork for an international bond issuance, signaling a major step toward normalising access to global capital markets. Speaking to Bloomberg on the sidelines of the World Economic Forum (WEF) Annual Meeting 2026 in Davos, the finance minister said a proposal seeking advisers will be issued in the coming weeks.
Aurangzeb said the government is currently evaluating whether to issue a dollar-denominated bond, a euro bond, or an Islamic sukuk. In parallel, Pakistan is also preparing to launch its first-ever panda bond, which would be issued in China’s onshore market, within the next few weeks.
According to the finance minister, Pakistan has consolidated gains across key macroeconomic indicators after implementing tough but necessary reforms. He noted that inflation, interest rates, the fiscal balance and the current account position have all shown a clear improvement in recent months.
“If you look at every key indicator — inflation, interest rates, the fiscal position and the current account — the direction of travel has clearly improved,” Aurangzeb told Bloomberg.
Pakistan had effectively been shut out of international bond markets since 2022 as rising inflation, dwindling foreign-exchange reserves and political uncertainty rattled investor confidence. Stability has gradually returned following a series of International Monetary Fund (IMF) bailout programmes that required strict fiscal discipline and structural adjustments.
Inflation, which once surged to nearly 40 percent, has now eased to single-digit levels. At the same time, major global credit rating agencies, including Moody’s, S&P and Fitch, have upgraded Pakistan’s sovereign ratings, reflecting an improved outlook.
Aurangzeb said foreign-exchange reserves are expected to reach the equivalent of three months of import cover by the end of the current fiscal year in June, a level widely viewed as a key global benchmark. He added that there is currently no immediate pressure on the rupee, underscoring growing confidence in the country’s external position.
The finance minister also highlighted progress on long-delayed structural reforms. These include the privatisation of state-owned enterprises and efforts to broaden the tax base. Following the successful privatisation of Pakistan International Airlines last month, the government is now seeking to sell a stake in the Roosevelt Hotel in New York.
Looking ahead, Aurangzeb said Pakistan aims to shift toward export-led growth to avoid the import-driven expansions that have repeatedly triggered balance-of-payments crises in the past.
“We have to stay the course on reforms,” he said. “That’s the only way to move toward sustainable growth.”
