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Pakistan is preparing to return to the international debt markets next year through a new Eurobond issuance, ending a nearly five-year break. The move, confirmed by the Finance Ministry’s adviser, aligns with the government’s strategy to diversify external financing as global investor confidence in Pakistan improves.
Pakistan last accessed the Eurobond market in 2021. Since then, a combination of weak credit ratings, balance-of-payments pressure, and global financial tightening kept the country out of commercial markets. However, recent repayments, IMF-backed stability measures, and multiple sovereign rating upgrades have bolstered Pakistan’s credibility internationally.
Bloomberg reported that Pakistan plans to issue dollar-denominated Eurobonds next year as part of its broader financing strategy. Adviser to the finance minister Khurram Shehzad confirmed the plan but did not disclose the bond size or exact timeline.
He added that Pakistan also aims to issue Panda bonds this year to widen funding channels.
“We are diversifying our financing sources,” Shehzad said, without sharing further specifics.
Finance Minister Muhammad Aurangzeb has already indicated that a Eurobond under the Global Medium-Term Note (GMTN) programme is planned for 2026. This follows the successful repayment of a $500 million Eurobond in September 2025, signalling improved repayment capacity.
According to report, Pakistan’s dollar bonds have surged 24% this year, the highest in Asia, buoyed by easing financial conditions and stronger investor appetite. Major rating agencies Fitch, S&P, and Moody’s have revised Pakistan’s outlook upward, with Moody’s raising the rating to Caa1 and Fitch upgrading it to B-, both with stable outlooks.
Pakistan has also secured $1 billion in financing from Middle Eastern banks and plans to raise $250 million through yuan-denominated Panda bonds later this year.
Economic experts say the return to global markets marks an important step:
“Pakistan’s improving credit metrics and IMF support have reopened the door to international investors,” analysts told.
