Defence Minister Khawaja Muhammad Asif has launched a sharp rebuttal against allegations of financial irregularities regarding Pakistan’s recent Eurobond and Panda Bond transactions, terming the criticism a “malicious campaign” intended to discredit the nation’s economic efforts.
The controversy stems from reports, notably by journalist Shahbaz Rana, highlighting questions raised by MNA Aliya Kamran regarding a $750 million Eurobond transaction. A Eurobond is essentially a loan that a country or company borrows from international investors using a currency other than its own.
The reports suggest that the government opted for a three-year loan at roughly seven percent interest, despite allegedly receiving a counter-offer from Citibank for up to $1 billion at a slightly higher rate but with a more favourable five-year maturity period.
The reports further query whether mandatory competitive processes and Public Procurement Regulatory Authority (PPRA) rules were bypassed in the deals.
Addressing the concerns, Khawaja Asif took to social media to defend the state’s financial dealings. Dismissing the claims, he stated: “Apparently, a malicious campaign seems to have been launched to discredit Pakistan’s strategic financial transactions through baseless and misleading allegations. These claims are entirely false.”
The Defence Minister emphasised that the government adhered to all necessary protocols, asserting: “Both Pakistan’s inaugural Panda Bond and the USD 750 million Eurobond were executed in full compliance with all applicable legal and regulatory requirements.”
Furthermore, Asif criticised the nature of the reporting, labelling it “yellow journalism” driven by vested political interests. He warned that framing National Assembly proceedings in such a manner risks “undermining investor confidence, damaging Pakistan’s credibility in international capital markets, and adversely affecting the country’s future financing initiatives.”
He further added: “The Government of Pakistan should explore the right to proceed against those engaged in irresponsible and misleading reporting, in accordance with applicable law. Quoting National Assembly proceedings is actually playing safe when you are not confident about what you are reporting.”
