ISLAMABAD: Pakistan is likely to return to international bond market as government planned to issue bonds worth $ 1 to $ 5 billion.

Government would issue Panda bonds worth $ 300 million in Chinese market to mark beginning of Pakistan’s return to international bond market. Bonds will be issued after approval of new loan programme from International Monetary Fund (IMF). Government will also approach commercial banks in China and other financial markets. Sources within Ministry of Finance said that government is also planning to issue Eurobonds in next fiscal year (2025-2026). Issuance of these bonds is aimed at paying off external debts and improving Pakistan’s credit rating. Earlier in April, Pakistan repaid $ 1 billion in Eurobonds as scheduled payment ahead of seeking long-term bailout from International Monetary Fund. Bond, launched in 2014 and repaid, was maturing this month. “Payment was made to agent bank for onward distribution to bond holders,” State Bank of Pakistan said in statement.