Pakistan has successfully repaid its $500 million International Bond (Eurobond) that matured on September 30, 2025, reaffirming its commitment to timely debt servicing and financial discipline.
The bond, issued in 2015 with a 10-year tenor for global investors, was cleared on schedule, marking what officials described as “business as usual” for the country’s external debt obligations.
The repayment comes at a time when Pakistan’s economic indicators are showing steady improvement. External buffers and liquidity have strengthened, while sovereign ratings have been upgraded by global agencies. Investor confidence has also improved, with Pakistan’s bonds recently trading at a premium in international markets.
At the fiscal level, the country’s debt-to-GDP ratio has declined from 77% in FY2020 to 70% in FY2025. Meanwhile, the share of external debt in overall public debt has dropped to 32% from 38%, easing Pakistan’s exposure to foreign exchange vulnerabilities. Debt growth has also moderated significantly this year compared to previous years.
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Looking ahead, easing global borrowing costs coupled with stronger domestic fundamentals are expected to help Pakistan secure financing on more competitive terms.
