Islamabad, June 19, 2025: In a significant development for Pakistan’s debt market, the Ministry of Finance on Wednesday generated Rs 1.2 trillion through a major sale of government bonds. This includes the successful issuance of the country’s inaugural 15-year Zero Coupon Bond, securing over Rsv47 billion.
As per the finance ministry, this newly introduced bond does not provide annual interest payments. Instead, investors will obtain a one-time return at the end of the 15-year term. The strong investor turnout reflects rising market trust in Pakistan’s economic direction and the impact of recent fiscal reforms.
“This is a major step forward in making Pakistan’s financial system stronger and more resilient. We are introducing new, smart ways of borrowing that reduce risk and give investors more options. Our aim is to manage public debt responsibly, promote Islamic finance, and attract more long-term investment to support the country’s economic growth,” stated Finance Minister Senator Muhammad Aurangzeb.
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This successful offering is part of a wider plan aimed at extending the average maturity profile of public debt and reducing dependence on short-term borrowing. Pakistan’s domestic debt maturity average has now risen from 2.7 years to 3.75 years, easing rollover stress.
The ministry further highlighted a transformation in the investor landscape, with increasing involvement from pension schemes and insurance firms, moving away from the conventional banking sector dominance.
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The finance ministry further added that it is developing additional products to enable the general public to invest in government securities, particularly Islamic ones, to promote saving habits and broaden financial access.
Despite ongoing economic uncertainity, the ministry noted that the results of Wednesday’s bond sale were regarded as an endorsement of Pakistan’s macroeconomic path, with the government using long-term bonds to both stabilize fiscal accounts and strengthen the domestic capital market.
