Pakistan has appointed consortiums of leading international banks for its Global Medium-Term Note (GMTN) and International Sukuk programs as part of a strategy to diversify external financing sources and support future sovereign debt issuances, the Finance Ministry said on Tuesday.
Finance Minister Muhammad Aurangzeb, currently in Washington, D.C., held a virtual meeting with senior executives of the selected banks, marking the start of the government’s strategic partnership with the financial institutions following a competitive procurement process.
Under the three-year appointments, the consortiums will support Pakistan’s sovereign capital market transactions across conventional and Islamic financing instruments, including Eurobonds, international sukuks and PKR-denominated, USD-settled bonds.
The government named Standard Chartered Bank, Citibank, Deutsche Bank, Emirates NBD Capital and MUFG Securities Asia Limited as the consortium for Eurobond issuances. For international sukuks, the selected banks are Standard Chartered Bank, Dubai Islamic Bank PJSC, Citibank, Emirates NBD Capital and Mashreq Bank PSC. The consortium for PKR-denominated, USD-settled bonds comprises Standard Chartered Bank, Citibank and Deutsche Bank.
The Finance Ministry said the appointments are part of a structured financing framework rather than a one-time transaction, enabling Pakistan to access international capital markets through frequent issuances when required and in line with its financing strategy after completion of the necessary documentation and regulatory formalities.
The ministry said the inclusion of MUFG Securities Asia Limited and Mashreq Bank for the first time expands Pakistan’s engagement with leading international financial institutions. It said Pakistan’s return to international capital markets is being supported by an improving macroeconomic environment, citing fiscal consolidation, stronger external buffers, improved debt sustainability indicators and ongoing structural reforms. The ministry also pointed to a narrowing of sovereign credit spreads, saying investor confidence has strengthened as economic fundamentals improved.
The government said its objective is not only to raise financing but also to build a diversified, market-based funding platform that broadens the investor base, lowers financing costs and strengthens Pakistan’s long-term presence in international capital markets.
Refinery expansion
Also on Tuesday, Aurangzeb met a delegation from Honeywell Technologies led by Vice President and General Manager Barry Glickman in Washington to discuss the modernization and expansion of Pakistan’s refinery sector.
According to the Finance Ministry, the minister welcomed Honeywell’s proposal to upgrade domestic refineries, saying it could enhance Pakistan’s refining capacity, reduce dependence on imported petroleum products and strengthen the country’s energy security.
The discussions covered Honeywell’s refining technology and equipment solutions as well as potential financing from the U.S. Export-Import Bank, the U.S. International Development Finance Corporation, export credit agencies and international commercial banks.
The finance minister said the proposed refinery modernization initiative would support Pakistan’s energy security, industrial development and sustainable economic growth.