Pakistan has successfully repaid its $500 million International Bond (Eurobond) due on September 30, 2025, marking another milestone in the country’s commitment to financial discipline and timely debt servicing.
The bond, issued in 2015 with a 10-year maturity, was repaid as scheduled, reflecting Pakistan’s adherence to its financial obligations.
Khurram Schehzad, Advisor to Pakistan’s Finance Minister, highlighted that the repayment is part of Pakistan’s ongoing efforts to maintain fiscal stability. The country has been able to meet its debt obligations despite global economic challenges, signaling a steady and responsible approach to managing its finances.
He said that this development comes at a time when Pakistan’s external buffers and liquidity have strengthened, and the country’s sovereign ratings have been upgraded. Investor confidence in Pakistan is on the rise, with Pakistani bonds trading at a premium compared to recent history. Furthermore, the country’s debt-to-GDP ratio has improved from 77% in FY2020 to 70% in FY2025, indicating better debt management.
The advisor said that the share of external debt in total public debt has also decreased from 38% to 32%, which reduces the vulnerability to exchange rate fluctuations. Additionally, debt growth has significantly moderated in FY2025, compared to previous years.
Looking ahead, easing global borrowing costs, along with stronger economic fundamentals, put Pakistan in a favorable position to access international markets at more competitive terms. This positive trajectory is expected to help the country build a more sustainable debt profile.
As Pakistan continues to meet its financial obligations, the government’s efforts toward fiscal discipline and improved investor sentiment pave the way for a more resilient economic future.
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