PESHAWAR: Finance Minister Muhammad Aurangzeb assured that Pakistan is well-positioned to repay its $1.3 billion Eurobond maturing in April 2026, citing improved macroeconomic stability and a more predictable financing outlook.
Aurangzeb made the statement during his address at the Pakistan Business Summit on Thursday, organized by the Nutshell Group in Peshawar. He noted that the government successfully repaid a $500 million Eurobond on September 30, 2025, calling it a “total non-event.”
Regarding remittances, the finance minister stated that inflows into the formal economy have increased, with the country expecting $41–43 billion in remittances for the current year, up from $38 billion last year.
On monetary policy, Aurangzeb indicated that the 11% policy rate might be lowered in the ongoing fiscal year, stating that there is enough cushion for a reduction despite the rate being under the central bank’s jurisdiction.
He also emphasized the need for structural reforms to push the private sector forward and highlighted the importance of restoring the credibility of tax authorities. He mentioned that the government is making progress in widening and deepening the tax base.
On the privatisation front, Aurangzeb confirmed that 24 state-owned enterprises have been handed over to the Privatisation Commission.
Pakistan’s development budget for FY26 stands at Rs4.3 trillion (around $12–13 billion), with the finance minister emphasizing the need for correct prioritisation and coordination between the federation and provinces in utilizing these funds.
Aurangzeb also shared that Pakistan will repurpose funds for relief efforts following the recent floods, which caused significant damage to agricultural land.
The finance minister further mentioned the results of recent international visits, including 24 signed joint ventures in China and key trade and investment agreements with the United States in sectors such as minerals, IT, agriculture, and pharma.
Aurangzeb added that Pakistan is preparing to issue its first Panda bond in China by year-end, marking the country’s re-entry into international capital markets.
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