MoF Rejects Reports on Sovereign Financing Transactions

The Ministry of Finance (MoF) has dismissed recent media reports and public claims regarding Pakistan’s sovereign financing transactions, describing them as misleading and lacking important context.

 

In a statement, the ministry said both the planned Eurobond issuance and Pakistan’s first Panda Bond fully complied with all applicable legal, regulatory, procurement, and approval requirements.

 

The MoF emphasized that sovereign borrowing decisions are not based solely on headline coupon rates or bond maturities. Instead, financing options are evaluated using multiple factors, including pricing, tenor, execution certainty, underwriting commitments, transaction costs, credit spreads, market conditions, and consistency with Pakistan’s Medium Term Debt Management Strategy (MTDS).

 

According to the ministry, the government selects financing arrangements that offer the best overall balance between cost, timing, risk, and execution while supporting long term debt management objectives.

 

The statement also clarified that administrative matters related to institutional appointments do not affect the legality or governance of sovereign financing transactions, adding that the Debt Management Office and the Finance Division have the expertise to conduct such operations in accordance with all applicable laws and procedures.

 

The ministry warned that inaccurate or misleading information could weaken investor confidence, harm Pakistan’s reputation in international capital markets, raise future borrowing costs, and affect the country’s financing strategy. It urged that public discussions be based on verified facts and complete information.

 

The MoF reaffirmed its commitment to transparency, prudent debt management, and making sovereign financing decisions in line with Pakistan’s economic and strategic interests.