Pakistan Pitches Sukuk and Panda Bonds to Banks at Bangkok Meetings

Pakistan’s Finance Minister Muhammad Aurangzeb discussed prospective sukuk issuance, more Panda bonds and other financing with Standard Chartered and three UAE banks at the World Bank Group–IMF Annual Meetings 2026 in Bangkok. The goal is to diversify how Pakistan borrows and to lengthen its debt maturities. None of the reports describes a sukuk transaction arising from these talks; what’s on record is discussion.

What Pakistan Discussed With the Banks

According to Nukta, Aurangzeb discussed prospective sukuk issuance, Panda bonds and other financing options with a Sharjah Islamic Bank delegation. Nukta reported that the delegation reaffirmed “its support for Pakistan and expressed readiness to participate in a Sukuk issuance.” The outlet described the core objective as diversifying borrowing sources, extending debt maturities and replacing costly short-term debt with longer-term financing.

Bloom Pakistan reported on October 17, 2026, that the minister held separate meetings with delegations from Sharjah Islamic Bank, Abu Dhabi Commercial Bank and Ajman Bank. Per Bloom Pakistan, the instruments on the table included sukuk, rupee-denominated, dollar-settled instruments, Panda bonds, Eurobond tokenization and a Diversified Payment Rights transaction. Investment areas raised in the meetings ranged from refinery upgrades and the ML-1 railway project to power distribution privatization, airport outsourcing and data centers.

The reports don’t give a size, tenor or timing for a sukuk, and none says a mandate has been issued. The Halal Times covered Pakistan’s sukuk plans in July, and again later that month. Readers wanting the mechanics can consult The Halal Times explainer on how sukuk work without interest.

Standard Chartered Roundtable

The Financial Daily reported that Aurangzeb briefed investors at Standard Chartered Bank’s Sovereign Investor Roundtable in Bangkok on October 14, 2026. He outlined Pakistan’s capital market strategy, including further Panda bond issuances, sukuk and a proposed rupee-denominated, dollar-settled international bond. According to The Financial Daily, he put the emphasis on lower borrowing costs, longer debt maturities and reduced rollover risks. Business Recorder separately headlined the talks as covering sukuk and Panda bonds with the bank.

Panda Bonds and the China Track

Aurangzeb also met China’s Finance Minister Lan Fo’an in Bangkok on October 14, 2026, Arab News Pakistan reported. The outlet put the approved Panda bond program at RMB 7.2 billion ($1 billion) and said the first issuance, in May 2026, was 1.75 billion yuan ($261 million). A Finance Division statement, quoted by Arab News Pakistan, said discussions also covered “Pakistan’s return to the Eurobond market after four years and plans for further panda bond issuances under the approved RMB 7.2 billion program, with continued AIIB support.”

Arab News Pakistan also quoted the minister on strategy: Pakistan wants to “keep going back and be a repeat issuer.” Earlier in the week, Minute Mirror reported on October 13, 2026, that Pakistan has regained access to international capital markets through Panda bonds and Eurobonds.

The Double-B Goal

The Express Tribune reported on October 15, 2026, that Pakistan aims to enter the double-B sovereign rating category. Per the same report, Aurangzeb cited a fiscal deficit at a 22-year low and three consecutive years of primary surpluses. 24 News HD reported the same day that he held talks with S&P Global Ratings officials on the target.

The Finance Division statement reported by Arab News Pakistan referenced plans for further Panda issuance under the approved program, and Sharjah Islamic Bank is the only lender named in the reports as ready to join a Pakistani sukuk.

Frequently Asked Questions

Has Pakistan issued a new sukuk?

Not from these talks, according to the reports. Nukta and Bloom Pakistan describe discussions on sukuk issuance with Sharjah Islamic Bank and other lenders in October 2026. Neither report gives a size, pricing or mandate.

Which banks did Pakistan’s finance minister meet in Bangkok?

Bloom Pakistan reported meetings with Sharjah Islamic Bank, Abu Dhabi Commercial Bank and Ajman Bank, while The Financial Daily reported a briefing at Standard Chartered’s investor roundtable on October 14, 2026. Minute Mirror also reported meetings with Mashreq Bank and investor roundtables hosted by Barclays and Jefferies on October 13, 2026.

Why is Pakistan looking at sukuk and Panda bonds?

Nukta reported that the goal is to diversify borrowing, extend maturities and replace costly short-term debt. The Financial Daily reported that the minister emphasized lower borrowing costs, longer debt maturities and reduced rollover risks.

How big is Pakistan’s Panda bond program?

Arab News Pakistan reported that the approved program is RMB 7.2 billion, or about $1 billion, with a first issuance of 1.75 billion yuan in May 2026. Further issuances were discussed with China’s finance minister.