FM Aurangzeb Confirms Pakistan’s $500m Eurobond Repayment

Finance Minister Muhammad Aurangzeb has confirmed that Pakistan successfully repaid its $500m Eurobond on September 30, reassuring investors of the country’s ability to meet future external debt obligations.

Speaking at the Pakistan Business Summit in Peshawar as the keynote speaker, FM Aurangzeb emphasized the government’s strong commitment to honor all international debt payments. “We repaid the $500m Eurobond without disrupting the market,” he stated.

Looking ahead, Aurangzeb expressed confidence in Pakistan’s ability to meet the $1.3b Eurobond repayment scheduled for April 2026, adding that economic fundamentals are moving in the right direction.

The minister highlighted improvements including reduced financing costs, foreign exchange reserves covering nearly three months of imports, and a stable exchange rate. He stressed that these indicators are restoring investor confidence in Pakistan’s economy.

Aurangzeb also noted that remittances reached $38b last year and are expected to rise to between $41–43b this fiscal year.

On structural reforms, the finance minister underscored the need for separating tax policy from administration, privatizing state-owned enterprises, reforming energy pricing, and boosting exports through tariff reductions and foreign investment.

He further announced that Pakistan plans to issue its first Panda Bond before the year ends, tapping into Chinese capital markets for additional financing.

Regarding development spending, Aurangzeb urged better allocation of the Rs4.3 trillion national development budget toward infrastructure, healthcare, and education. He also called for greater cooperation between federal and provincial governments to maximize impact.