HONG KONG, Feb 6: Pakistan has invited bids from investment banks to arrange an offshore bond issue, its third foray into the international market since February 2004, banking sources said on Monday.

Pakistan sent out a request for proposals two weeks ago and had held a first round of meetings with the banks, one source said. The sources said Pakistan had given no indication of the size and maturity of the bonds, but bankers expected the government was seeking a dollar issue.

They gave no further details.

Pakistan, which had been under economic sanctions after conducting nuclear tests in mid-1998, returned to the international debt market in February 2004 with a $500 million, five-year eurobond issue.

In January 2005, the country sold a $600 million Islamic bond.

Pakistani officials have said the country does not need the cash but wants to develop a benchmark for international markets.—Reuters