Pakistan has repaid its $500 million Eurobond on schedule. The bond matured on September 30, 2025. Finance Advisor Khurram Schehzad confirmed the repayment on Wednesday.
The Eurobond was first issued in 2015 with a 10-year tenor. Its timely settlement shows Pakistan’s commitment to responsible debt management. As a result, the country continues to strengthen its global credibility.
Stronger Fundamentals and Debt Outlook
Schehzad noted that the repayment came at a time of improving economic health. External reserves are stronger, liquidity has improved, and Pakistan’s sovereign credit ratings are rising. Investor confidence has also grown, with bonds now trading at a premium.
He also highlighted progress in debt indicators. The debt-to-GDP ratio fell from 77 percent in FY20 to 70 percent in FY25. In addition, the share of external debt in total public debt declined from 38 percent to 32 percent. These shifts have reduced Pakistan’s foreign exchange risks.
Debt growth also slowed in FY25 compared to previous years. Therefore, the overall outlook is more sustainable.
A Positive Path Forward
Looking ahead, global borrowing costs are easing. Combined with stronger fundamentals, this allows Pakistan to access international markets more competitively. As a result, the country is positioned to build a more stable and sustainable debt profile.
Schehzad emphasized that the Eurobond repayment reflects both resilience and responsibility. It also signals stronger investor trust and a steady step toward financial stability.
