ISLAMABAD: Pakistan is preparing two plans to fetch $750 million (approx Rs213 billion) in inflows within the next few weeks through the launch of Panda Bond and raising commercial financing with the help of international banks, The News has learnt.
The government is considering raising $300 to $500 million commercial financing through a consortium of international banks including Deutsche Bank, Standard Chartered Bank and others as Islamabad is set to repay $500 million on maturity of Eurobond on September 30, 2025. Pakistan is making plans to fetch dollar inflows at a when the IMF review mission is scheduled to visit Pakistan from this ongoing week. The IMF team will land at Karachi on September 25 for holding meeting with the State Bank of Pakistan (SBP) high-ups, Overseas Investors Chamber of Commerce & Industry (OICCI) and Pakistan Business Council (PBC) leadership.
“It is under consideration to raise $300-500 million commercial loans through international banks,” top official sources confirmed to The News on Monday. Pakistan also plans launching of Panda bond within few weeks period, probably in November, to generate $250 million as first installment from Chinese market.
When contacted for seeking comments, Federal Minister for Finance Muhammad Aurangzeb said on Monday that they were focused on launching Panda bond and its inaugural prescription would be done.
However, the sources said that there are two major repayments on account of maturity of Eurobonds out of which $500 million will become due in September 30, 2025 while $1 billion will become due in April 2026. The government and SBP are finding ways and means to pay the outstanding external liabilities without burdening the foreign exchange reserves.
On other hand, Pakistan is all set to issue its inaugural Panda bond of $250 million equivalent in Chinese Renminbi (RMB), diversifying its funding sources and penetrating into Chinese market first time in the country’s history.
The issuance will be accomplished with the guarantees from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). The bond will be placed privately on China’s Interbank Bond Market and offered exclusively to qualified institutional investors. Structured with a fixed-rate coupon and a three-year maturity, the bond is expected to carry an interest rate in the single digit.
The issuance is being coordinated with support from a consortium of financial advisors and underwriters, including China International Capital Corporation and Habib Bank Limited. It is targeted for completion by November 2025, pending final regulatory approvals in both countries.
Due to Pakistan’s sub-investment-grade credit rating, a credit enhancement mechanism is required to access China’s investment-grade-only bond market. To achieve a domestic AAA rating in China, the ADB and AIIB will provide co-guarantees, jointly covering up to 95 percent of the bond’s principal and any accrued but unpaid interest.
The maximum guarantee amount is capped at $285 million (equivalent in RMB). The ADB would guarantee up to $160 million, while the AIIB will cover up to $125 million. The guarantees will be extended directly to bondholders in line with Chinese regulatory standards.
Meanwhile, the Federal Board of Revenue (FBR) has launched a crackdown against influential tax evaders, including jewellers and real estate developers, to recover billions of rupees. As part of this effort, the FBR has collected data on jewellers across the country amid concerns over widespread mis-declaration.
According to sources, the FBR has gathered information on more than 60,000 jewellers nationwide. Of these, only 21,000 are registered with the FBR, and just 10,524 have filed tax returns. FBR officials stated that most jewellers are underreporting their income to evade taxes, and action has now been initiated against them.
In the first phase, a list of 900 jewelers from Punjab—including those based in Lahore, Rawalpindi, Faisalabad and Multan—has been prepared. Tax notices are being issued to those whose declared income does not match their business scale, transactions, or lifestyle, while thousands of others remain entirely outside the tax net.
FBR officials emphasised that the drive aims to bring all sectors into the tax system. “No trader or industrialist will be issued notices without reason, but every individual must honestly pay their due share of taxes for the country to function,” they maintained.
Meanwhile, chairing a high-level meeting on enhancing investment volume, economic and trade activities in Pakistan, Prime Minister Shehbaz Sharif directed the relevant authorities to develop a comprehensive roadmap and a reform agenda with practical projects to promote investment and trade in all key sectors.
The prime minister emphasised that agriculture, IT, minerals, tourism and renewable energy were important sectors that could attract foreign investment. Along with investment, he said promoting trade was also part of the government’s policy to significantly increase exports of the country.
He said that targets had been given to the ministries to utilise all available resources to ensure the timely completion of all ongoing projects. He also instructed all ministers to identify feasible projects and take immediate steps to put them into practice. For this purpose, he said, a roadmap and a reform agenda should be devised with the future in mind so that progress toward our goals can be made in an organised manner.
The prime minister emphasised that the private sector would play a pivotal role in the economic roadmap and their participation would be ensured. “Our ongoing economic and financial reform policies have given a new direction to the economy, and due to the innovation and transparency, the country is now on the path of development,” he added.
The meeting, held via Zoom from London, was attended by Federal Minister for Environment Musadik Malik, Federal Minister for Petroleum Ali Pervez Malik, Federal Minister for Finance Muhammad Jehanzeb, Federal Minister for Commerce Jam Kamal, Federal Minister for Information Attaullah Tarar and Federal Minister for Economic Affairs Ahad Khan Cheema.
