Pakistan’s Ministry of Finance has rejected what it described as misleading reports and public commentary about the country’s Eurobond and Panda Bond transactions, warning that inaccurate information could increase Pakistan’s future borrowing costs.

In a statement posted on X, the ministry said both the Eurobond issuance and Pakistan’s first-ever Panda Bond were completed in full compliance with all legal, regulatory, procurement, and approval requirements.

The ministry said comparing borrowing deals solely on interest rates or bond maturity presents an incomplete picture. It explained that government borrowing decisions are based on several factors, including overall financing costs, market conditions, execution certainty, timing, underwriting commitments, credit spreads, and consistency with Pakistan’s Medium-Term Debt Management Strategy (MTDS).

According to the statement, the government selects the borrowing option that provides the best balance between cost, risk, timing, and execution rather than focusing on a single benchmark.

The Finance Ministry also said administrative matters related to institutional appointments have no impact on the legality or governance of government borrowing transactions, adding that the Debt Management Office and Finance Division have the expertise to manage such transactions in accordance with applicable laws and procedures.

The ministry warned that spreading inaccurate or misleading information about Pakistan’s bond deals could undermine investor confidence, damage the country’s reputation in international financial markets, increase future borrowing costs, and affect its long-term financing objectives.

Reaffirming its commitment to transparency and prudent debt management, the ministry said it would continue to make borrowing decisions in Pakistan’s best economic and strategic interests.