Pakistan will continue to “diversify its funding sources,” Finance Minister Muhammad Aurangzeb said, hinting that his government could issue more Chinese yuan-based bonds and tap the Japanese market for samurai bond issuances.
Aurangzeb spoke to Nikkei Asia on Monday on the sidelines of the annual meetings of the International Monetary Fund and World Bank, which kicked off in Bangkok on the same day.
In mid-May, Pakistan issued its first panda bond worth 1.75 billion yuan ($261 million) as part of a 7.2 billion yuan program, with the Asian Development Bank and the Asian Infrastructure Investment Bank providing partial guarantees. A panda bond is a yuan-denominated bond issued by a foreign entity to raise money in China’s domestic bond market.
Aurangzeb said the recent panda bond will not be a “one-time issuance” and that Pakistan intends to “keep going back and be a repeat issuer,” given how China is the “second largest and deepest capital market in the world.”
“We do not want to increase the quantum of our external debt,” said Aurangzeb, while expressing interest in ways to further diversify funding sources, including the issuance of yen-denominated samurai bonds.
Samurai bonds “would make sense,” and are “something which we should think through,” he said, adding: “We need to do more homework.”
In addition to diversifying external borrowing, Pakistan is accelerating efforts to attract foreign direct investment by increasing competitiveness in key industries, including the automobile sector. Last year, the country unveiled a five-year National Tariff Policy (NTP), which gradually reduces import tariffs in key sectors.
“We will not make any compromise on the national tariff policy,” Aurangzeb said. “It’s not only about the auto industry — it’s about industries in general.”
In the past, the government has given protection without sunset clauses. “That has not worked for Pakistan,” he said. “We want to make our industry competitive.” He believes the NTP can help exports, “especially for raw materials and intermediate goods.”
Aurangzeb noted that ASEAN reduced tariffs in the late 1990s to generate various upsides. “This can very much be a Southeast Asia moment for Pakistan,” he said.
Pakistan is seeking cabinet approval for a revamped auto policy that will support the adoption of electric vehicles as part of the country’s energy transition and climate change strategies. Islamabad wants 30% of new vehicles to be electric by 2030.
Aurangzeb said Pakistan welcomes Chinese automakers — “all of them.” China is Pakistan’s largest bilateral lender. The two countries marked the 75th anniversary of diplomatic relations in May, underscoring a partnership that spans economic, defense and geopolitical cooperation.
Since becoming an IMF member in 1950, Pakistan has entered over two dozen IMF programs. Currently in its 25th arrangement, Pakistan is one of the most frequent users of IMF financial assistance.
“We are in good shape with respect to the program itself, which in turn helps us with our discussions with rating agencies and investors,” Aurangzeb said. This program has a “structural reform agenda” that will “lead to sustainability,” he said. Pakistan will graduate from IMF assistance, he said, once the “rest of the world becomes convinced that we don’t need the lender of last resort.”
Separately, Aurangzeb stressed the urgent need to address Pakistan’s rapid population growth and its implications for health, education and employment, calling for coordinated action to strengthen human capital and create jobs.
He was speaking at the World Bank’s roundtable on “Transforming Demographic Transition into Human Capital Gains and Job Creation,” held on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, according to a press release issued by the Ministry of Finance here on Tuesday.
Moreover, Aurangzeb reaffirmed Pakistan’s commitment, as incoming Chair of the G-24, to strengthening the group’s collective influence and advancing the interests of developing economies.
Speaking in his capacity as First Vice-Chair of the G-24 at the Finance Ministers and Central Bank Governors’ Meeting, held on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, the minister highlighted the challenges facing developing economies, including fragmentation disrupting trade and investment, climate shocks eroding development gains, restrictive financial conditions and widening financing gaps. He stressed that reform of the international financial architecture must keep pace with these challenges, said a press release issued by the Ministry of Finance on Tuesday.
Moreover, Aurangzeb met Sultan Abdulrahman Al-Marshad, Chief Executive Officer of the Saudi Fund for Development (SFD), on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok.
He highlighted Pakistan’s improving macroeconomic position and renewed access to international capital markets. Discussions focused on expanding trade and investment, strengthening private-sector engagement, following up on the bilateral investment protection agreement and exploring opportunities for refinery upgrades.
Both sides noted satisfactory progress on SFD-supported projects and emphasized the importance of developing a fresh pipeline of projects. The SFD reaffirmed its continued support to Pakistan within its mandate.
He also met with Imad Fakhoury, IFC Regional Vice President for the Middle East and Central Asia, on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand.
Discussions focused on strengthening IFC support for private-sector-led growth and jobs and translating macroeconomic stability into sustainable growth, a press release from the Ministry of Finance said on Tuesday.
The meeting reviewed IFC’s expanding portfolio, small-business financing, entrepreneurship, capital markets, and green and digital bonds. The Finance Minister reaffirmed commitment to Reko Diq and appreciated IFC’s financing leadership.
Discussions also covered mining infrastructure and value addition, affordable housing and developer financing, and agricultural development through improved storage, cold chains and electronic warehouse receipt financing.
Both sides explored greater private-sector participation in livestock development and support for pharmaceutical exports through stronger regulatory standards and investment.