ISLAMABAD: Pakistan is set to re-enter the global debt markets by issuing dollar-denominated Eurobonds next year, following a near five-year hiatus, Bloomberg reported. This move is part of the government’s broader strategy to diversify its financing portfolio.
Khurram Schehzad, adviser to the finance minister, confirmed the plan but did not disclose further details regarding the issuance. Schehzad also reiterated that the country intends to issue Panda bonds this year, further diversifying its funding sources.
Pakistan last tapped the Eurobond market in 2021. The government’s decision to return to global markets is seen as an effort to strengthen investor confidence and increase returns on sovereign bonds, with support from the International Monetary Fund (IMF).
Earlier, Finance Minister Muhammad Aurangzeb announced plans to issue a Eurobond under Pakistan’s Global Medium-Term Note (GMTN) program in 2026. This comes after the successful repayment of a $500 million Eurobond in September 2025, which matured after a 10-year term.
Bloomberg noted that Pakistan’s dollar bonds have surged 24% this year, the best performance in Asia, driven by improving investor appetite and easing global financial conditions. Pakistan’s economic outlook has also been positively reassessed by major credit rating agencies, including Fitch, S&P, and Moody’s.
In addition to Eurobonds, Pakistan plans to raise $250 million through yuan-denominated Panda bonds this year and has already secured $1 billion in financing from Middle Eastern banks in June.
The drought in commercial bond issuance in the last three years is linked to Pakistan’s poor credit rating and an impending balance of payments crisis. Following an improvement in Pakistan’s rating to Caa1 by Moody’s and a B- (from CCC+) by Fitch earlier this year, with a stable forward outlook, Pakistan is ready to jump back into the commercial debt market.
Discover more from Brackly News
Subscribe to get the latest posts sent to your email.
