Pakistan raises $500m after four-year gap

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ISLAMABAD: A day after receiving a $2 billion loan from Saudi Arabia, the government announced on Friday that it had raised $500 million in the international capital market through a Eurobond, marking the first such issuance in four years.

In a post on the social media platform X, Adviser to the Finance Minister Khurram Schehzad said, “Pakistan has successfully returned to the international capital markets after a four-year hiatus, with the issuance of a $500m Eurobond today, at attractive terms under its Global Medium-Term Note (GMTN) Programme.”

“The three-year Eurobond witnessed strong investor demand despite ongoing global market and geopolitical uncertainties — signalling renewed confidence in Pakistan’s economic outlook,” he said.

Informed sources stated that the bond offered a 6.975 per cent interest rate, maturing in April 2029. The announcement came a day after Saudi Arabia announced it was extending its support facility for Pakistan to $8bn from $5bn, with the first additional disbursement of $2bn.

Eurobond offers 6.97pc return with maturity in 2029

In his X post, Schehzad said that this “well-timed issuance adds fresh liquidity to Pakistan’s sovereign yield curve, strengthening its presence in global bond markets and supporting the development of a more efficient pricing benchmark for future transactions”.

He said that the development marked Pakistan’s successful market re-entry after four years, demonstrated strong investor demand in a challenging global environment and strengthened positioning in international capital markets.

“The transaction reflects improving investor sentiment and marks an important step in Pakistan’s strategy to diversify funding sources and rebuild a sustainable market presence,” he said.

“This milestone underscores the continued efforts of the Finance Division, particularly the debt management team, in executing a disciplined and forward-looking debt strategy,” he said.

“Looking ahead, Pakistan will continue to deepen its engagement with global markets, with a request for proposals for financial advisers for the GMTN and international sukuk programmes to be launched soon, while the Panda bond is also progressing toward issuance,” he said.

“With macroeconomic stability taking hold, structural reforms advancing, and growth momentum gradually strengthening, with the opening of the Strait of Hormuz and energy prices correcting, Pakistan’s timely return to global markets reflects improving fundamentals and renewed investor confidence with a stable to positive economic outlook,” he said.

Speaking to the media in Washington, Finance Minister Muhammad Aurangzeb maintained that the development was the “culmination of a four-year journey”.

He said that it signalled that Pakistan’s economy was “going in the right direction”. He further stressed that it was a “huge vote of confidence” in Pakistan’s leadership and the country’s economic direction.

“It is a moment of happiness for us,” he remarked.

Pakistan, one day in advance, repaid the $1.4bn Eurobond, which matured on April 8.

Published in Dawn, April 18th, 2026

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