Pakistan Repays USD 500M Eurobond on Schedule

Islamabad, Oct 1 (PTI) Pakistan has repaid its USD 500 million Eurobond on schedule, with a senior official on Wednesday claiming that it reflects the government's commitment to financial discipline.

The bond was issued in 2015 with a 10-year tenor and matured on September 30, 2025.

“Timely debt servicing remains business as usual, reflecting the country's commitment to financial discipline,” Khurram Schehzad, the Adviser to the Finance Minister, posted on social media.

He said the development was encouraging as it comes at a time when external buffers and liquidity have improved, sovereign ratings have been raised, and investor confidence is rising, with Pakistan's bonds recently trading at a premium.

Schehzad further said that the debt-to-gross domestic product (GDP) ratio had improved from 77 per cent in FY20 to 70 per cent in FY25.

“External debt's share in total public debt has declined from 38pc to 32pc in FY25, reducing FX (foreign exchange) vulnerability,” Schehzad added.

“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, he said.

“This is a steady step forward — repayment as expected, but with stronger fundamentals, improved investor sentiment, and a more resilient outlook.”

Pakistan's economy has shown improvement since 2023, when it was close to default, which was averted by the two back-to-back loan packages, including the latest of USD 7 billion pledged last year.

The State Bank of Pakistan has followed a strict monetary policy to bring inflation under control and improve foreign exchange reserves.