Pakistan has successfully made the timely repayment of a $500 million Eurobond, reinforcing its commitment to financial discipline and improving its international credit standing. According to Adviser to the Finance Ministry Khurram Shehzad, the 10-year Eurobond issued in 2015 matured on September 30, 2025, and Pakistan fulfilled the repayment obligation without delay. He stated that this timely payment is a clear reflection of Pakistan’s financial discipline. 

Shehzad highlighted that in recent months, the country has witnessed notable improvements in foreign exchange reserves and liquidity, and global financial institutions have upgraded Pakistan’s credit ratings. He also noted that investor confidence is rising, with Pakistan’s bonds trading at a premium. He further explained that the debt-to-GDP ratio has improved, declining from 77% to 70%, and the share of external debt in total public debt has dropped from 38% to 32%.

He emphasized that the pace of debt accumulation in FY2025 has slowed significantly, and that a global decline in borrowing costs could benefit Pakistan further. It is worth noting that the Eurobond, issued in 2015 for a 10-year term, had attracted considerable interest from international investors at the time. Economic analysts say that this repayment will have a positive impact on Pakistan’s credit profile and will further enhance investor confidence globally.

The move also supports the position of credit rating agencies, which have noted improvements in Pakistan’s external liquidity management. Following this repayment, near-term default risks have been reduced, and the country’s overall credit rating has been strengthened. 

Credit: Independent News Pakistan (INP)