ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Tuesday the country plans to tap the US dollar, euro and Islamic sukuk markets “in due course” as part of efforts to diversify funding sources and sustain economic stability.
The announcement came during a meeting with a high-level Acumen delegation led by founder and Chief Executive Officer Jacqueline Novogratz. The delegation of board members and global investors is visiting Pakistan to meet government officials and private stakeholders in a move seen as a sign of renewed foreign interest in the South Asian nation’s economy.
“Aurangzeb also discussed Pakistan’s plans to issue its inaugural Panda Bond before the year’s end and its intent to access USD, Euro, and Islamic Sukuk markets in due course,” the Finance Division said in a statement after the meeting.
A Panda Bond is a type of debt issued by a foreign borrower in China’s domestic market, denominated in renminbi (RMB). It enables foreign governments and companies to raise funds from Chinese investors and broaden their financing base.
“The Minister reaffirmed that the private sector must lead Pakistan’s economic growth, while the government’s role is to provide a supportive ecosystem,” the finance ministry statement said.
“He highlighted Pakistan’s move toward an export-led growth model, supported by tariff reforms and responsible fiscal management, aimed at ending the boom-and-bust cycle.”
Aurangzeb appreciated Acumen’s continued engagement in Pakistan, particularly its focus on agriculture and climate resilience. He also informed the delegation about the clearance of backlogs in repatriating foreign profits and dividends, noting that the recent $500 million Eurobond repayment had been handled as a routine transaction, a sign of returning macroeconomic stability.
Aurangzeb highlighted Pakistan’s focus on structural reforms in taxation, energy and privatization, including the final stages of Pakistan International Airlines’ divestment and the planned privatization of power distribution companies.
The minister also underscored Pakistan’s commitment to climate-resilient development, noting that the country faces twin challenges of population growth and climate change, which have intensified floods and droughts in recent years. He said policies promoting decarbonization, nutrition and education were being embedded in Pakistan’s ten-year Country Partnership Framework with the World Bank — a long-term plan that guides the Bank’s support for the country’s economic and climate priorities.
According to the finance ministry statement, Novogratz said expanding access to finance for Pakistan’s young talent could help transform innovative ideas into scalable businesses and reaffirmed Acumen’s commitment to invest in agriculture, climate resilience, energy and poverty reduction in the country.
The delegation also discussed progress on Acumen’s $90 million Agriculture Resilience Fund for Pakistan, which aims to promote climate-smart farming and sustainable food systems.
