ISLAMABAD: With conventional capital markets remaining uncertain and largely unfavourable, Pakistan plans to shift its focus towards Sustainable Bonds and Panda Bonds over the next three years to diversify external financing and tap into climate-related funding opportunities.

According to the Medium Term Debt Strategy (MTDS 2026–28), external financing will continue to prioritise multilateral and bilateral sources, which offer concessional terms and longer maturities.

However, to broaden market access and improve financing flexibility, the government is preparing to re-enter international capital markets through instruments such as Panda Bonds, Sustainable Bonds, and Eurobonds — subject to favourable global interest rate conditions and macroeconomic stability.

The Debt Management Office (DMO) of the Ministry of Finance said........

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