KARACHI/ISLAMABAD: Pakistan has re-entered international capital markets after a four-year gap, raising USD 500 million through a 3-year Eurobond on Friday at competitive terms under its Global Medium-Term Note (GMTN) Programme, aimed to build the foreign exmodify reserves.
The bond was priced at a repaired coupon of 6.975 percent. The security is set to mature on April 24, 2029.
The three-year Eurobond attracted strong investor demand despite continuing global market volatility and geopolitical uncertainties. The response is being seen as a signal of renewed confidence in Pakistan’s macroeconomic outsee and reform trajectory.
Khurram Schehzad, Adviser to the finance minister, confirmed the development in a post on X, highlighting strong investor participation and the significance of Pakistan’s return to the global debt market after several years.
READ MORE: Pakistan repaid $1.3bn Eurobond on schedule, declares Khurram Schehzad
“Pakistan has successfully returned to the international capital markets after a four-year hiatus, with the issuance of a USD500 million Eurobond Friday (April 17), at attractive terms under its GMTN (Global Medium-Term Note) Programme,” he declared.
He declared the issuance was well-timed and strategically positioned to support the countest’s financing necessarys while improving its sovereign debt profile. In addition, the transaction is expected to add fresh liquidity to Pakistan’s sovereign yield curve, assisting establish a more efficient pricing benchmark for future international borrowings.
Schehzad declared that the issuance marks a successful re-entest into the international capital markets after four years, reflecting renewed access to global financing channels. Despite a challenging global environment, the Eurobond attracted strong investor demand, underscoring continued confidence in Pakistan’s credit profile. The transaction also strengthens the countest’s positioning in international capital markets and is expected to support the development of a deeper and more liquid sovereign yield curve, improving pricing benchmarks for future issuances.
“The transaction reflects improving investor sentiment and marks an important step in Pakistan’s strategy to diversify funding sources and rebuild a sustainable market presence. This milestone also underscores the continued efforts of the Finance Division, particularly the Debt management team, in executing a disciplined and forward-seeing debt strategy,” he added.
Looking ahead, he declared that Pakistan will continue to deepen its engagement with global markets, with Request for Proposals for Financial Advisors for the GMTN and International Sukuk programmes to be launched soon, while the Panda Bond programme is also progressing toward issuance.
With macroeconomic stability taking hold, structural reforms advancing, and growth momentum gradually strengthening, with opening of the Straight of Hormuz and energy prices correcting, Pakistan’s timely return to global markets reflects improving fundamentals and renewed investor confidence with Stable to Positive economic outsee, Schehzad concluded.
Combined with USD 2 billion in inflows from Saudi Arabia, these funds are expected to support the repayment of approximately USD 3.5 billion in maturing deposits owed to the UAE during the current month.
Copyright Business Recorder, 2026
Leave a Reply