Pakistan plans $750 million inflows through Panda Bond, commercial financing

Pakistan is preparing a multi-pronged strategy to secure $750 million (approximately Rs213 billion) in inflows within the next few weeks, with plans to raise $300 to $500 million in commercial financing from a consortium of international banks and another $250 million through the launch of a Panda Bond, The News reported. 

The government is negotiating a loan with banks such as Deutsche Bank and Standard Chartered to help repay a $500 million Eurobond due on September 30, 2025. 

Additionally, Pakistan is moving ahead with plans to issue its inaugural Panda Bond, targeted for November, to generate $250 million from Chinese investors. 

The bond will be issued in Chinese Renminbi (RMB) and will be underwritten with guarantees from the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB).

The financing efforts come as Pakistan grapples with a large external debt burden, with $500 million due in September and $1 billion in Eurobond repayments scheduled for April 2026. The government is looking to use these inflows to ease the strain on foreign exchange reserves while fulfilling external liability obligations.

In another move to bolster public finances, Pakistan’s Federal Board of Revenue (FBR) is ramping up efforts to tackle tax evasion. The FBR has launched a crackdown against tax evaders, especially among the jewellery and real estate sectors. The tax authority has gathered data on over 60,000 jewellers across the country, of whom only 21,000 are registered, and only 10,524 have filed returns. Tax notices are being issued to businesses whose declared income does not align with their lifestyle or scale of business.

In parallel, Prime Minister Shehbaz Sharif held a high-level meeting to discuss strategies for enhancing investment and trade activities in the country. He emphasized the importance of sectors like agriculture, IT, minerals, tourism, and renewable energy in attracting foreign investment and boosting exports. 

The prime minister also instructed ministries to create a comprehensive roadmap for economic development, ensuring the timely completion of ongoing projects.