ISLAMABAD (Kashmir English): The Ministry of Finance has categorically rejected misleading claims in recent media reports and public comments on Pakistan’s sovereign financing transactions, including the issuance of Eurobonds and Panda Bonds.
According to the Ministry of Finance, these claims are based on incomplete information and ignore important facts and context.
The Ministry of Finance clarified that the issuance of Eurobonds and Pakistan’s first Panda Bond were conducted in accordance with all applicable legal, regulatory, procurement and approval requirements.
The statement said that comparing different financing transactions solely on the basis of the outstanding coupon rate or duration is misleading.
Sovereign financing decisions are highly complex and involve a comprehensive assessment of price, duration, assurance of successful issuance, underwriting responsibility, timing, total transaction costs, credit spreads compared to benchmarks, current market conditions and Pakistan’s medium-term debt management strategy.
According to the statement, the government selects a financing option that provides the best balance between cost, duration, assurance of successful execution, timing and risks in line with the medium-term debt management strategy.
According to the Ministry of Finance, administrative matters related to institutional appointments do not affect the legality of sovereign financing transactions or administrative oversight.
The statement said that the Debt Management Office and the Finance Division have the requisite capacity and expertise to effectively handle sovereign financing transactions in accordance with all applicable laws, regulations and procedures.
The statement said that the spread of false and misleading information can damage investor confidence, affect Pakistan’s reputation in international capital markets, increase the cost of borrowing in the future and undermine the country’s strategic financing objectives.
The Ministry of Finance said that public debate should be based on verified facts, complete information and responsible reporting.
The Ministry of Finance reiterated its commitment to adhering to the highest standards of transparency, professional conduct, and prudent debt management, saying that sovereign financing decisions will continue to be made only in the best economic and strategic interests of Pakistan.
