Islamabad October 20 2021: Pakistan plans to raise $3.5 billion by issuing sukuk, Panda and possibly environmentally-friendly green bonds after reviving its loan program with the International Monetary Fund, as per Bloomberg.
The government is looking into its first green bond issue, Muhammad Umar Zahid, director general for debt at the finance ministry, said Monday. It is also looking to sell delayed Panda bonds in four to five months, he said.
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Pakistan plans to borrow 4 trillion rupees ($23 billion) in the year that began July with about 38% in foreign debt, according to Zahid. The nation typically uses a mix of domestic and foreign debt including multilateral and bilateral loans other than bonds to meet its funding needs.
Pakistan’s debt has a junk rating, six steps below investment grade, at Moody’s Investors Service. The economy is expected to grow near 5% this year after expanding 3.9% last year, according to the State Bank of Pakistan.
Pakistan has raised $3.5 billion in Eurobonds this year, while state-owned Water and Power Development Authority raised $500 million in green bonds