Pakistan has successfully repaid a $500 million Eurobond that matured on September 30, 2025, reaffirming the country’s commitment to meeting its international debt obligations.
The announcement was made by Khurram Shahzad, adviser to the finance minister, through a message shared on social media platform X.
Timely repayment of Eurobond
Khurram Shahzad stated that the 10-year Eurobond, issued in 2015, was repaid in full and on time. He described the move as a clear reflection of Pakistan’s financial discipline and its ability to meet commitments despite economic challenges.
Improved reserves and liquidity
The adviser highlighted that Pakistan’s external reserves and liquidity have improved, which has helped restore confidence among international partners and investors. This, he said, has played a vital role in stabilizing the country’s financial position.
Positive outlook from international institutions
According to Khurram Shahzad, international institutions have responded positively to Pakistan’s fiscal management. The country’s sovereign rating has been improved, further strengthening its credibility in global financial markets.
Investor confidence on rise
The advisor noted that investor sentiment toward Pakistan has been improving, with the country’s bonds now trading at a premium. He explained that such developments indicate growing trust in Pakistan’s ability to manage debt and sustain growth.
Debt ratios show decline
Providing further details, Shahzad revealed that Pakistan’s debt-to-GDP ratio has dropped from 77% to 70%. Similarly, the external share of government debt has decreased from 38% to 32%.
Also Read: Pakistan to repay $500m Eurobond by end of September
He emphasized that the pace of debt growth in 2025 remained significantly low, which he attributed to better fiscal management and timely repayments.
Benefit from lower global borrowing costs
Looking ahead, the adviser said Pakistan is expected to benefit from the reduction in global borrowing costs, which will make future financing more affordable.
