Pakistan has successfully repaid its international bond of $ 500 million (Eurobond), maturing on September 30, 2025, in line with all its obligations.
Advisor to Finance Minister Khurram Schehzad announced on X on Wednesday that Eurobond, who was issued in 2015 to global investors with a 10-year tenor, was decided on time.
Update: 🇵🇵 Pakistan maintains stable debt service, in the midst of strengthening basic elements and improving Outlook
Pakistans has successfully repaid its $ 500 million. International Bond (Eurobond) Due to September 30, 2025 – as planned, in line with all its obligations.
Issued in 2015 to …
– Khurram Schehzad (@kschehzad) October 1, 2025
“This repayment reflects Pakistan’s ability and determination to honor its international obligations according to plan,” Schehzad said. “What makes it even more important is that it comes at a time of improving basic and investor mood.”
The message comes on the basis of the recent gains in Pakistan’s financial indicators. External buffers and liquidity have been strengthened, sovereign ratings have been upgraded and investors’ confidence has been brought – with Pakistan’s bonds dealing with a prize in recent months.
Read: Rating upgrade Sparks Eurobond Rally
Debt bearability measurements are also improved. Pakistan’s debt-to-BNP ratio has fallen from 77 percent in FY20 to 70 percent in FY25. The proportion of the external debt in the total public debt has dropped from 38 pc to 32 pcs. Debt growth has also been strongly moderated in FY25 compared to previous years.
Looking ahead, Pakistan is better positioned to enter international markets. “To facilitate global loan costs, combined with stronger basic elements, gives Pakistan room to access capital on more competitive terms and build a more sustainable debt profile,” Schehzad added.
Pakistan’s international bonds have been on an upward course in recent months, helped by improving macroeconomic basic conditions. Following Standard & Poor’s upgrading of Pakistan’s sovereign credit rating to ‘B-‘ with a stable view in July 2025, bonds over the interest basket witnessed strong winnings, with longer-tenor instruments gathering strongly. The 30-year-old bond, maturing in 2051, rose over 10% month to date, while shorter maturity, including 2025 and 2026 bonds, also angled higher.
Investor’s confidence has remained resilient, even during periods of geopolitical excitement. In May 2025, Pakistan’s Eurobond and Sukuk awards announced remarkable gains despite Indo-Pak-Scaling as the yield fell by up to 61 basic points across tenors. Analysts attributed this progress in the IMF program, improved foreign reserves and controlled inflation, reducing the standard risk and attracting global investors.
Read more: Global Bonds Rally Despite Indo-Pak-Scaling
The momentum in the global debt markets has been built since 2023. Pakistan’s international bonds more than doubled in value after securing an IMF bailout of $ 3 billion in June 2023, with investors expressing renewed confidence in reforms and the government’s ability to serve its debt. Analysts noted that the sharp rally in Eurobonds and Sukuks was driven by fiscal consolidation, improvements to the current accounts and exchange rate stability.
