▪️ Pakistan has successfully repaid its $500 million Eurobond on schedule, reinforcing confidence in the country’s economic recovery and fiscal discipline.
The bond, issued in 2015 with a 10-year maturity, came due on September 30, 2025. Officials said its timely repayment reflects improved reserves, stronger fundamentals, and growing investor trust.
▪️ Adviser to the Finance Minister Khurram Schehzad announced the development on X, stating:
“Timely debt servicing remains business as usual, reflecting the country’s commitment to financial discipline.”
▪️ Schehzad highlighted several encouraging indicators:
- Pakistan’s debt-to-GDP ratio improved from 77% in FY20 to 70% in FY25.
- The share of external debt in total public debt fell from 38% to 32%, reducing FX vulnerability.
- Sovereign credit ratings have been upgraded by Fitch, Moody’s, and S&P, boosting investor confidence.
▪️ He further noted that easing global borrowing costs, combined with Pakistan’s stronger economic fundamentals, position the country to raise funds on more competitive terms in the future.
▪️ The repayment comes against the backdrop of Pakistan’s recent economic turnaround. In 2023, the country faced a severe balance-of-payments crisis and risk of default. A timely IMF bailout and support from friendly nations including China, Saudi Arabia, and the UAE helped stabilise reserves and avert default.
▪️ Since then, the government has implemented tough IMF reforms, tightened fiscal discipline, and strengthened external buffers. As a result, investor sentiment is improving, and Pakistani bonds have recently traded at a premium.
Analysts see the Eurobond repayment as a symbol of resilience and policy continuity, boosting Pakistan’s case for sustainable growth and long-term financial stability.
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