The government has stepped up efforts to raise funds through Panda bonds and commercial financing to meet its external obligations, sources said on Tuesday.

According to media reports, Pakistan is likely to issue $250 million worth of Panda bonds in November, which will be floated in the Chinese market.

Finance Minister Muhammad Aurangzeb has confirmed that the government’s focus is on launching Panda bonds, backed by guarantees from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

The bonds will be placed in China’s interbank bond market and offered to eligible institutional investors.

With a fixed coupon rate and three-year maturity, the interest rate is expected to remain in single digits.

Alongside, the government is also weighing options to secure $300-500 million in commercial financing through a consortium of international banks.

Pakistan faces external debt repayments of $1.5 billion in September and April of the current fiscal year.

Officials said the financing measures aim to manage obligations without exerting additional pressure on foreign exchange reserves.