ISLAMABAD: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, said on Tuesday that Pakistan will not seek additional financing from other friendly countries after receiving recent financial support from Saudi Arabia.
Speaking to journalists in Islamabad, the finance minister stated that the government is now shifting its focus toward commercial financing to meet the countryâs economic needs.âPakistan is moving towards commercial rather than bilateral financing,â he said. His remarks came after Saudi Arabia deposited $3 billion into the State Bank of Pakistan earlier this month. The amount was released in two tranchesâ$2 billion on April 15 and $1 billion on April 21âunder a financial support arrangement. The Saudi assistance has helped strengthen Pakistanâs external position, enabling the country to repay $3.45 billion to the United Arab Emirates. These funds had previously been held as deposits with central banks.
Regarding ongoing negotiations with the International Monetary Fund (IMF), Aurangzeb expressed confidence that Pakistan will receive a $1.2 billion tranche next month. He also confirmed that consultations for the upcoming federal budget are currently in progress. The minister dismissed concerns about food security and fertiliser shortages, stating that Pakistan is not facing any such issues despite the ongoing Middle East conflict impacting regional energy infrastructure. He added that remittances remain stable, including those coming from the UAE.
Panda Bond Plans
Aurangzeb said Pakistan is preparing to issue a $250 million Panda Bond in May. He noted that the Asian Development Bank and the Asian Infrastructure Investment Bank are providing guarantees for the issuance, while discussions with Chinese authorities are in their final stages. He further said that Pakistan plans to issue Eurobonds and Sukuk bonds over the next two to three years as part of its broader financing strategy.
Earlier this month, Pakistan returned to international capital markets after a four-year gap, raising $500 million through a Eurobond issuance under its Global Medium-Term Note Programme.
According to Adviser to the Finance Minister Khurram Schehzad, the three-year Eurobond attracted strong investor demand despite global market and geopolitical uncertainties, signalling renewed confidence in Pakistanâs economic outlook.
