Pakistan eyes more global bond issues, sees budget upside from Iran deal

Pakistan's Finance Minister Muhammad Aurangzeb said it is too early to revise the FY27 budget despite potential economic improvements from a possible post-Iran-conflict recovery, noting damaged energy infrastructure will delay supply chain normalization. Pakistan plans to shift toward more commercial borrowing (Panda Bonds, Eurobonds, USD-denominated, and rupee-linked dollar-settled issues) to alter its creditor profile without increasing total external debt. The FY27 budget targets 4% growth, 8.2% inflation, 18% higher defence spending at PKR 3 trillion ($10.8B), and relies on higher tax revenue to keep a $7B IMF programme on track.