Pakistan has explored a range of financing options, including Sukuk issuances, Panda bonds, debt swaps, secured financing and public-private partnerships, as the government seeks to extend debt maturities, manage repayment obligations and strengthen access to international capital markets. The discussions took place during meetings between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and international development partners, financial institutions and representatives of the International Monetary Fund (IMF) on the sidelines of the IMF-World Bank Group Annual Meetings 2026 in Bangkok, Thailand. The meetings focused on diversifying Pakistan’s financing sources, attracting investment and supporting economic stability without placing additional pressure on the country’s external repayment position.
Engagements with Sharjah Islamic Bank, Abu Dhabi Commercial Bank, Ajman Bank and J.P. Morgan covered Pakistan’s financing requirements, investment opportunities and economic outlook. Aurangzeb highlighted progress under the IMF programme, fiscal consolidation, stronger foreign exchange reserves, improved sovereign credit ratings and the country’s restored access to international capital markets. He reiterated the government’s commitment to macroeconomic stability, structural reforms and sustainable, export-led growth. The discussions reflected Pakistan’s efforts to build on improvements in its economic indicators while seeking financing arrangements that offer longer repayment periods and reduce dependence on expensive short-term borrowing.
The financing proposals included potential Sukuk issuances, rupee-denominated instruments settled in US dollars, additional Panda bond offerings and possible tokenization of Eurobonds. The government also discussed financing backed by the Multilateral Investment Guarantee Agency (MIGA), restored credit limits for Pakistan, participation in International Islamic Trade Finance Corporation financing, International Finance Corporation-supported transactions, rupee financing and potential loan conversions. These instruments and arrangements could provide additional options for managing funding requirements and accessing different investor groups. The discussions also focused on replacing costly short-term borrowing with longer-term financing to reduce the concentration of repayments without increasing the overall external debt burden.
Sharjah Islamic Bank reaffirmed its support for Pakistan and expressed readiness to participate in a potential Sukuk issuance. Aurangzeb also welcomed the interest shown by financial institutions in advising on future financing transactions. Beyond debt instruments, the meetings considered investment opportunities in refinery upgrades, the privatisation of power distribution companies, airport outsourcing, electricity transmission and the Main Line-I railway project. Financing opportunities for data centres and digital finance were also examined, with the finance minister stressing the importance of competitive electricity pricing and an effective regulatory framework to support investment. These discussions linked Pakistan’s financing strategy with infrastructure development and the expansion of economic activity in sectors requiring long-term capital.
The engagement with J.P. Morgan focused on Pakistan’s ambition to achieve a sovereign credit rating in the BB category. The bank offered analytical support concerning the indicators and institutional improvements relevant to this objective. Discussions also covered engagement with international investors, private-placement underwriting, credit enhancement, secured financing and potential debt swaps. A higher sovereign credit rating could influence how international investors assess Pakistan’s creditworthiness and borrowing conditions, although any rating decision would depend on the assessment of the relevant rating agencies. The discussions highlighted the government’s interest in improving the country’s standing in international financial markets while developing financing structures suited to its debt management requirements.
Aurangzeb also met Alexander De Croo, Administrator of the United Nations Development Programme (UNDP) and United Nations Under-Secretary-General, to discuss development financing, climate resilience and employment generation. Both sides explored ways to convert existing financing arrangements and policy frameworks into bankable projects capable of attracting investment. The discussions included UNDP’s Implementation Bridge, the development of an investable project pipeline through the Sustainable Development Goals Investment Fair and the V20 platform, blended finance arrangements, public-private partnerships and closer cooperation between UNDP and the World Bank. These initiatives were considered as potential ways to connect development priorities with financing structures that can attract public and private investment.
Climate-related financing was another area of discussion, particularly biodiversity financing and potential debt-for-nature and debt-for-climate swaps. Such arrangements can link debt obligations with agreed environmental or climate objectives, subject to their structure, financing terms and implementation requirements. The parties also examined opportunities in climate risk insurance, including the Global Shield and parametric insurance. These instruments can help countries manage the financial effects of climate-related disasters and other defined risks. The discussions took into account Pakistan’s external debt composition and the need to evaluate financing arrangements in the context of its existing obligations and development requirements.
The finance minister also highlighted the role of private-sector-led employment, cash flow-based lending, digital finance and guarantees in improving access to funding for small businesses and farmers. Expanding credit to small and medium-sized enterprises and the agriculture sector could support business operations, investment and economic activity, particularly where borrowers have limited access to conventional financing. The meetings also considered the development of capital market benchmarks through financial institution issuances, which could help establish reference points for pricing debt instruments and assessing financing costs. These efforts form part of the broader discussion on strengthening financial access and supporting productive sectors of the economy.
In a separate meeting, Aurangzeb met Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, to review Pakistan’s economic performance and reform agenda. Discussions covered revenue mobilisation, inflation, economic growth and the current account, alongside the economic implications of regional conflict and uncertainty. Aurangzeb outlined measures related to energy procurement and winter preparedness, while highlighting adequate fertiliser supplies to protect food security. He also pointed to stronger foreign exchange reserves, reduced forward foreign exchange liabilities, longer debt maturities and lower external repayment requirements as developments relevant to Pakistan’s economic position.
The minister reaffirmed the government’s commitment to maintaining primary budget surpluses, reducing public debt and pursuing growth-friendly tax reforms while safeguarding social spending. Privatisation, greater private-sector participation and export-oriented growth were also discussed as priorities for strengthening economic resilience and creditworthiness. Both sides stressed the importance of sustaining reform momentum, maintaining political commitment and improving communication, while recognising the relationship between economic stability and national security. These discussions underscored the importance of consistent policy implementation in supporting Pakistan’s financing strategy and economic objectives.
On the sidelines of the annual meetings, Aurangzeb also engaged with international media, highlighting Pakistan’s economic stabilisation, resilient remittance inflows, investment opportunities and progress under the IMF programme. The range of meetings demonstrates the government’s efforts to combine conventional borrowing instruments with development financing, private investment and alternative debt management arrangements. The practical impact of these proposals will depend on the terms negotiated, investor participation, project preparation and the implementation of economic reforms. For Pakistan, the central objective remains to extend debt maturities, reduce repayment pressures, improve access to international capital and support sustainable growth while managing the country’s overall debt burden.
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