Karachi: The Debt Management Office of Pakistan's Ministry of Finance has unveiled a comprehensive strategy to strengthen the country's financial standing and attract international investments. During a recent meeting at the Pakistan Stock Exchange, officials disclosed plans for issuing bonds and engaging with global investors to boost liquidity.
The government plans to issue four requests for proposals in international markets to launch Panda and dollar bonds. The expected yield on these bonds is anticipated to align with existing Pakistan bond yields, making them competitive in the market. The initiative aims to attract foreign investments and provide a stable financial outlook.
In efforts to draw genuine liquidity, the debt management team is conducting roadshows globally. They have also identified over 100 potential global investors to support this endeavor. The approach seeks to ensure sustained investment, moving away from transient hedge fund allocations.
The upcoming maturity of a Euro Bond on April 8, 2026, amounting to $1.3 billion, was addressed as a non-issue, backed by sufficient resources. The team emphasized that previous repayments were handled smoothly.
To further strengthen investor relations, the debt office intends to hold regular meetings with analysts and establish a dedicated investor relations office. This step is aimed at improving communication and addressing investor concerns promptly.
The government has also established a capital market development council, led by the Finance Minister, to enhance retail participation and diversify the investor base. This move is part of a broader strategy to issue more fixed-rate, long-term bonds and reduce reliance on short-term instruments.
The government is focused on increasing the share of fixed-rate bonds, which rose to 24.75% in December 2025, with a target of over 30% by 2028. Shariah-compliant instruments currently account for 14.25% of domestic debt, with a goal of surpassing 20% by 2028.
In response to concerns about high rates on National Saving Certificates, which impact the retail debt market, the debt office is exploring solutions to address these challenges.
Director of Domestic Debt, Muhammad Khaliq uz Zaman, highlighted efforts to reduce foreign exchange risk by attracting real money investments in local currency bonds, aiming for a more balanced domestic and external debt mix. The strategy is supported by improving financial indicators, such as Gross Financing Need and Average Time to Maturity.