ISLAMABAD: Pakistan has returned to the international bond market with a record $3 billion Eurobond issuance, as the government seeks to cover external financing needs and repay maturing debt, the Ministry of Finance said.
The issuance, the largest single international bond sale in Pakistan’s history, was met with strong investor appetite. Global investors submitted nearly $6 billion in bids, almost double the amount Pakistan aimed to raise.
According to the Finance Ministry, the $3 billion was raised through two separate Eurobonds:$1.75 billion, 5.5-year bond at a yield of 7.50%$1.25 billion, 10-year bond at a yield of 7.90%The 10-year tranche marks Pakistan’s ability to secure longer-term financing from international markets.
Proceeds will be used to meet external financial obligations, including the repayment of older loans. Earlier this year, Pakistan had already raised $500 million through a Eurobond. With the latest transaction, total Eurobond borrowing in 2026 now stands at $3.5 billion.
Finance Ministry described the nearly $6 billion in investor offers as evidence of “renewed international confidence” in Pakistan’s economy and credit profile. Officials said the strong demand reflects a reassessment by global investors of Pakistan’s improving economic conditions and financing structure.
The government has hailed the successful issuance as a “major breakthrough” for Pakistan’s external financing position. While the deal eases immediate financing pressures, it also adds to Pakistan’s growing debt burden.
The new borrowing means Pakistan will pay interest between 7.50% and 7.90% annually, committing a significant portion of future revenues to debt servicing. Analysts note the issuance underscores Pakistan’s persistent reliance on fresh debt to retire old obligations — a cycle that continues to weigh on the national treasury.
Pakistan’s total public debt remains one of the biggest challenges for the economy. The government faces the difficult task of maintaining access to global capital while trying to reduce dependence on borrowing.
For now, the $3 billion inflow provides critical breathing room for external payments. But the principal, along with up to 7.90% interest, will come due in the coming years.
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