Finance minister says economic outlook may improve, but budget revision remains premature amid global uncertainty.
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ISLAMABAD: Pakistan may explore more global bond issuances and adjust its borrowing strategy following the end of the US-Iran conflict, according to Finance Minister Muhammad Aurangzeb.
Finance Minister Muhammad Aurangzeb said there could be “upsides” for next year’s economic projections after the US and Iran reached a ceasefire agreement, but stressed it is too early to revise the national budget.
He said energy infrastructure damage from the conflict has disrupted supply chains and pushed inflation higher, which will take time to stabilise.
Pakistan is considering replacing some bilateral borrowing with commercial loans and plans to issue Panda bonds, Eurobonds and other international debt instruments to diversify funding sources.
Aurangzeb said the government does not intend to increase total external debt, but aims to improve the structure of its creditors.
The FY2026–27 budget targets 4% growth and 8.2% inflation, while also increasing defence spending and relying on stronger tax revenues to support fiscal stability.
He added that any potential gains from defence exports or digital assets are still uncertain and will take time to materialise.
Pakistan is also moving toward regulating crypto and digital assets before introducing taxation in the sector.
Officials said the government will continue monitoring global developments before making any major revisions to economic projections.
