Pakistan requests ADB credit guarantee for Panda bond issuance

Pakistan requests ADB credit guarantee for Panda bond issuance as Finance Minister held discussions with ADB President.

Pakistan has sought a partial credit guarantee from the Asian Development Bank (ADB) for the issuance of Panda bonds, with Finance Minister Muhammad Aurangzeb expecting the bonds to be issued this year. During the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, Finance Minister Aurangzeb held discussions with ADB President Masato Kanda, focusing on the bank’s project pipeline and its commitment to accelerating project execution.

In his meeting with Kanda, the finance minister requested ADB’s support for the partial credit guarantee for the Panda bonds and expressed hopes for budgetary support materializing this year. He also assured Kanda of Pakistan’s participation in the Central Asia Regional Economic Cooperation (CAREC) meeting scheduled for November 2025.

According to a statement from the Ministry of Finance, Finance Minister Aurangzeb held productive meetings with major financial institutions, rating agencies, and global corporations. During a session with VISA’s Regional Vice President Andrew Torre, the minister praised VISA’s contribution to the digitalization of Pakistan’s economy and the introduction of various financial products. He highlighted VISA’s expansion in Pakistan, which would enhance financial inclusion and e-commerce, and assured the company of full governmental support to resolve operational issues.

Later, Aurangzeb met with Christos Harpanditis, Vice President of Philip Morris International, recognizing the company’s long-standing commitment to Pakistan. The finance minister underscored the improving business environment in Pakistan and the government’s tax reforms aimed at boosting compliance and curbing illicit cigarette production.

At the “Pakistan’s Economic and Monetary Policy Outlook” seminar organized by JP Morgan, the finance minister presented the country’s stable macroeconomic indicators, including twin surpluses and strong foreign exchange reserves, factors that contributed to Fitch’s recent upgrade of Pakistan’s sovereign credit rating.

The finance minister also met with representatives from Fitch Ratings and Moody’s, thanking Fitch for the sovereign rating upgrade and discussing ongoing structural reforms. He also emphasized reforms aimed at broadening the tax base during his talks with Moody’s and reaffirmed Pakistan’s commitment to constructive engagement with the US.

In a meeting with the World Bank’s Vice President for Digital Transformation, Sangbu Kim, Finance Minister Aurangzeb outlined Pakistan’s progress under the Digital Pakistan Policy, especially in taxation reforms. He sought the Bank’s support to further integrate technology in government operations and improve the Country Partnership Framework (CPF).

During the Vulnerable 20 (V20) Ministerial Dialogue on climate prosperity, the finance minister presented Pakistan’s Climate Financial Strategy and advocated for reforms in international financial structures to support climate-vulnerable nations. He also highlighted the recent staff-level agreement with the IMF on the Resilience and Sustainability Facility (RSF) and the World Bank’s CPF priorities, which focus on climate resilience and decarbonization.

The finance minister also engaged with the Pakistan Bank-Fund Staff Association (PBFSA), briefing them on the IMF staff-level agreement and discussing challenges related to population growth and climate change. In his conversation with Jihad Azour, IMF Director for the Middle East and Central Asia, Aurangzeb expressed gratitude for the successful IMF agreement and reiterated Pakistan’s commitment to continuing reforms.

Lastly, the finance minister met with a Standard Chartered Bank delegation, led by Roberto Hoornweg, to discuss the bank’s role in supporting Pakistan’s financing gap and plans for the country to re-enter international capital markets after the Fitch rating upgrade.