Pakistan taps global banks for $2bn bond plan to strengthen financing

After completing a competitive selection process under the Requests for Proposals (RFPs), the government finalized three separate banking consortiums to advise and arrange conventional

ISLAMABAD: The federal government has taken a major step toward raising at least $2 billion from international capital markets during the 2026-27 fiscal year by appointing leading global financial institutions to manage its upcoming sovereign bond issuances.

After completing a competitive selection process under the Requests for Proposals (RFPs), the government finalized three separate banking consortiums to advise and arrange conventional Eurobonds, International Sukuk, and Pakistani rupee-denominated, US dollar-settled bonds. The move is part of Pakistan’s broader strategy to diversify external financing sources and strengthen long-term access to global capital markets.

For the Eurobond programme, the selected consortium comprises Standard Chartered Bank, Citibank, Deutsche Bank AG, Emirates NBD Capital, and MUFG Securities Asia Limited. The International Sukuk consortium includes Standard Chartered Bank, Dubai Islamic Bank PJSC, Citibank, Emirates NBD Capital, and Mashreq Bank PSC. Meanwhile, Standard Chartered Bank, Citibank, and Deutsche Bank AG will oversee the issuance of PKR-denominated bonds settled in US dollars.

Finance Minister Senator Muhammad Aurangzeb formally launched the government’s partnership with the selected institutions during a virtual meeting held from Washington, D.C. The discussions focused on implementing Pakistan’s Global Medium-Term Note (GMTN) Programme and International Sukuk Programme, which are expected to support the country’s future borrowing plans.

According to the Finance Ministry, the sovereign capital market programme will include both conventional and Islamic financing instruments. Once all regulatory requirements and documentation are completed, Pakistan plans to make regular international bond issuances whenever financing needs arise, rather than treating the initiative as a one-time exercise.

Officials said the strategy is designed to establish a more stable, diversified, and sustainable external financing framework. The inclusion of MUFG Securities Asia Limited and Mashreq Bank in the banking consortiums is also expected to expand Pakistan’s engagement with a wider network of leading international financial institutions, enhancing investor confidence and broadening access to global markets.