Consortia selected for bond, Sukuk issuances

Federal Minister for Finance Muhammad Aurangzeb held a virtual meeting from Washington DC with the senior leadership of consortia of international banks under Pakistan's Global Medium-Term Note Programme and International Sukuk Programme.

The meeting marked the commencement of a strategic partnership with selected financial institutions. Following an evaluation process conducted in accordance with the criteria and procedures prescribed in the Request for Proposals (RFPs), Pakistan concluded the competitive process for the appointment of consortia of international banks for its Medium-Term Note and Sukuk programmes. For Eurobonds, the consortium of financial institutions includes Standard Chartered Bank, Citibank, Deutsche Bank, Emirates NBD Capital and MUFG Securities Asia Ltd. For the sale of international Sukuk, the consortium of banks comprises Standard Chartered, Dubai Islamic Bank, Citibank, Emirates NBD Capital and Mashreq Bank. And for the rupee-denominated US dollar-settled bonds, the consortium includes Standard Chartered, Citibank and Deutsche Bank.

The consortia have been appointed for three years and will support Pakistan's sovereign capital market issuances of both conventional and Islamic financing instruments. Upon completion of the required documentation and all applicable formalities, the government intends to utilise these structures for frequent issuances, as and when required, in line with its financing strategy.

According to a statement, this selection is not a one-off event, but rather part of a structured and ongoing process aimed at establishing a stable, diversified and sustainable external financing framework. The first-time inclusion of MUFG Securities Asia and Mashreq Bank further broadens Pakistan's engagement with the global financial institutions.

Pakistan's re-engagement with international capital markets is supported by the country's improving macroeconomic environment. Sustained fiscal consolidation, the rebuilding of external buffers, strengthening debt sustainability indicators and the continued implementation of structural reforms have reinforced investor confidence and economic credibility.

The positive reassessment of Pakistan's macroeconomic outlook is also evident from the significant compression in sovereign credit spreads, with market pricing increasingly reflecting strong underlying credit fundamentals and confidence in the country's reform trajectory.

"The government's objective extends beyond raising financing to developing a diversified, market-oriented funding platform that broadens the investor base, optimises financing costs and strengthens Pakistan's long-term presence in international capital markets," the statement added.

Aurangzeb discusses refinery modernisation

Separately, the finance minister met with a delegation of Honeywell Technologies, led by its Vice President Barry Glickman, in Washington. Aurangzeb welcomed Honeywell's proposed modernisation and expansion of Pakistan's refinery sector, noting its potential to enhance the country's refining capacity and reduce reliance on imported petroleum products.

The meeting included discussions on Honeywell's technology and equipment solutions as well as potential financing through the US Exim Bank, the US International Development Finance Corporation, export credit agencies and leading international banks. The minister emphasised that the proposed initiative would support Pakistan's energy security, industrial development and sustainable economic growth.