Aurangzeb holds financing talks with banks and UNDP at IMF-World Bank meetings
Pakistan's finance minister, Muhammad Aurangzeb, discussed prospective Sukuk issuance, Panda bonds and the possible tokenisation of Eurobonds with Sharjah Islamic Bank on the sidelines of the IMF-World Bank meetings in Bangkok, the finance ministry said on Saturday. The bank reaffirmed its readiness to participate in a Sukuk issuance, according to the ministry's account of the meeting.
The talks also covered rupee-denominated dollar-settled instruments and further Panda bond issuance. Aurangzeb said Pakistan needed to replace costly short-term debt, extend maturities and reduce repayment concentrations without raising overall external debt, citing improvements in fiscal and external indicators, stronger foreign exchange reserves and credit rating upgrades. The two sides discussed financing backed by the Multilateral Investment Guarantee Agency and the effect of rising global funding costs.
Separate meetings with Abu Dhabi Commercial Bank and Ajman Bank covered capital market issuances, debt management and funding diversification, the ministry said. With Abu Dhabi Commercial Bank, discussions included restoration of Pakistan credit limits, participation in International Islamic Trade Finance Corporation financing and an International Finance Corporation-supported Diversified Payment Rights transaction, as well as data centre financing and digital finance. Ajman Bank expressed willingness to advise on future financing transactions, while both sides reviewed the economic effects of regional conflict.
Aurangzeb also met UNDP Administrator Alexander De Croo to discuss development financing, climate resilience and employment. The ministry said the talks covered blended finance, public-private partnerships, debt-for-nature and debt-for-climate swaps, climate risk insurance through the Global Shield and parametric mechanisms, and cash-flow-based lending and digital finance for small businesses and farmers. Follow-up with the banks will be coordinated through the Finance Ministry's Debt Management Office.
The tokenisation reference is exploratory: the ministry described it as one option under discussion, not an announced transaction. For Pakistan, the meetings signal a continued push to diversify external funding through Islamic finance and Gulf lenders while managing a heavy repayment schedule.
