KARACHI: Pakistan’s government plans to issue four Requests for Proposal (RFPs) to major international investment banks as it moves toward launching Panda and dollar bonds, seeking to raise up to $1.25 billion from global markets, a senior finance ministry official told Arab News this week.
RFPs are formal invitations sent to banks asking them to submit bids to underwrite bond issuances, a step that signals the government is entering the execution phase of its borrowing plans. Panda bonds are yuan-denominated bonds issued in China, while dollar bonds are sold in international markets to global investors.
Pakistan has recently boosted the State Bank of Pakistan’s foreign exchange reserves to around $16 billion, supported by a $7 billion International Monetary Fund (IMF) program but continues to seek diversified sources of foreign funding. The country has also relied on financial support from friendly nations such as China, Saudi Arabia and the United Arab Emirates to manage balance-of-payments pressures.
The plans for the RFPs were discussed at a meeting of the finance ministry’s Debt Management Office (DMO) with financial market participants held on Jan. 12 at the Pakistan Stock Exchange, the finance ministry official said, requesting anonymity.
