In a key development, Pakistan has successfully repaid its $500 million Eurobond that matured on September 30, 2025, the Ministry of Finance announced on Wednesday.
“Pakistan has successfully repaid its $500mn international bond (Eurobond) due on 30 Sep 2025 – as scheduled, in line with all its obligations,” said Khurram Schehzad, Advisor to the Finance Minister, in a post on social media platform X.
Issued in 2015 to global investors with a 10-year tenor, the bond matured on 30 September 2025.
“Timely debt servicing remains business as usual, reflecting the country’s commitment to financial discipline.
“What’s encouraging is that this comes at a time when external buffers and liquidity have strengthened, sovereign ratings have been upgraded, investor confidence is improving, with Pakistan’s bonds trading at a premium in recent history,” said Schehzad.
The advisor shared that Pakistan’s debt-to-GDP ratio has improved from 77% in FY20 to 70% in FY25. Whereas, external debt’s share in total public debt has declined from 38% to 32% in FY25, reducing foreign exchange vulnerability, he added.
On the other hand, the country’s debt growth has moderated sharply in FY25 versus in earlier years.
“Looking ahead, easing global borrowing costs, alongside stronger fundamentals, position Pakistan to access markets on more competitive terms and continue building a more sustainable debt profile.
“This is a steady step forward – repayment as expected, but with stronger fundamentals, improved investor sentiment, and a more resilient outlook,” said Schehzad.
Pakistan’s foreign exchange reserves position has somewhat stabilised in recent weeks, with reserves held by the SBP increased by $22 million on a weekly basis, reaching $14.38 billion as of September 19, 2025, the latest data showed.
The government remains in talks with the International Monetary Fund (IMF) for the second review of the USD7 billion Extended Fund Facility (EFF) programme and the first review of the Resilience and Sustainability Facility (RSF).
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