Panda Bonds features outlined: External payments will be cleared as scheduled: Aurangzeb

ISLAMABAD: Pakistan will meet all its external payment obligations on schedule, including repayments of loans from the United Arab Emirates (UAE) and Eurobonds, Finance Minister Muhammad Aurangzeb said on Tuesday, while outlining plans to raise fresh financing through Panda Bonds.

Speaking informally to reporters, Aurangzeb said arrangements had been finalised for the repayment of UAE-related obligations and Eurobonds, signalling confidence in the government’s management of the country’s finances. “All commitments regarding Pakistan’s external payments will be fulfilled on time,” he said.

Aurangzeb added that foreign exchange reserves would be maintained in line with targets set under the International Monetary Fund (IMF) programme, highlighting the role of IMF-backed policies in stabilising the economy.

“These policies have helped steer Pakistan’s economy in the right direction and provide a framework for stability,” he said.

He said Pakistan is preparing to secure commercial financing and issue bonds to meet fiscal requirements, adding that talks with a consortium of banks are ongoing as part of efforts to diversify the country’s funding sources.

He added that the government is also resuming preparations to issue Panda Bonds, with a launch expected at the end of April, adding that Pakistan aims to raise a total of $1 billion through the bonds, marking its first-ever issuance in the Chinese market.

“Since this is our first Panda Bond issuance, the process is taking additional time,” he said.

Aurangzeb acknowledged that the novelty of the issuance is adding complexity to the process but expressed confidence that the government would meet its financing targets for the current fiscal year.

He reiterated the administration’s commitment to fiscal discipline, even as it seeks new sources of funding. “We remain focused on maintaining fiscal discipline while securing the necessary financing,” he said.

He also addressed the economic impact of rising regional tensions, noting that policies would need to be carefully formulated to safeguard stability.

He said the government was closely monitoring developments and would make important economic decisions and finalise budget preparations in the coming days.

“These steps will be crucial in sustaining economic momentum and meeting our international commitments,” he said.

Copyright Business Recorder, 2026