As the government bids to diversify its financing portfolio, Pakistan plans to raise funds through dollar bonds next year, after a hiatus of nearly five years, reported Bloomberg.
“The nation plans to re-enter the Eurobond market,” said Khurram Schehzad, adviser to the finance minister, in response to questions. However, the adviser did not divulge further details.
Schehzad also reiterated the country’s plan to issue Panda bonds this year. The nation last tapped the Eurobond market in 2021.
“The planned return to global debt markets underscores Pakistan’s push to diversify funding sources, with support from the International Monetary Fund (IMF) helping strengthen investor confidence and boost returns on its sovereign bonds,” read the report.
Last month, Finance Minister Muhammad Aurangzeb announced that Pakistan plans to re-enter the international capital markets with a Eurobond issuance under its Global Medium-Term Note (GMTN) program in 2026.
Back in September, Pakistan successfully repaid its $500 million Eurobond, which matured on September 30, 2025. Issued in 2015 to global investors with a 10-year tenor, the bond matured on September 30, 2025.
Meanwhile, Bloomberg highlighted that Pakistan’s dollar bonds have surged 24% this year, the best performance in Asia.
“Investor appetite for Pakistan’s debt has improved amid easing global financial conditions, as further rate cuts by the Federal Reserve open a window for frontier economies to regain access to international markets,” it said.
As per the government’s economic team, Pakistan’s economic progress has been externally validated by three major credit rating agencies, including Fitch, S&P, and Moody’s, all of which have upgraded the country’s outlook in recent months.
Apart from eurobonds, Islamabad also plans to raise $250 million through yuan-denominated Panda bonds this year and secured $1 billion in financing from Middle-Eastern banks in June after a gap of over two years, read the report.
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