Pakistan has repaid a $500 million Eurobond that matured on September 30, 2025, reaffirming its commitment to international debt obligations. Khurram Shahzad, adviser to the finance minister, announced the repayment on social media platform X. He highlighted that the 10-year bond, issued in 2015, was repaid in full and on time, demonstrating Pakistan’s financial discipline despite economic challenges.
Shahzad pointed out that Pakistan’s external reserves and liquidity have improved, helping restore confidence among international investors and partners. This improvement has played a crucial role in stabilizing the country’s financial position. He also noted that international institutions have responded positively, resulting in an improved sovereign rating for Pakistan.
Read more: Govt to raise $400 million through global bonds
Investor sentiment toward Pakistan has been on the rise, with the country’s bonds now trading at a premium. This reflects growing trust in Pakistan’s ability to manage debt and sustain economic growth. Shahzad also shared that Pakistan’s debt-to-GDP ratio has declined from 77% to 70%, while the external share of government debt dropped from 38% to 32%.
Update: Pakistan Maintains Steady Debt Servicing, Amid Strengthening Fundamentals and Improving Outlook
Pakistan’s has successfully repaid its $500mn International Bond (Eurobond) due on 30 Sep 2025 – as scheduled, in line with all its obligations.
Issued in 2015 to…
— Khurram Schehzad (@kschehzad) October 1, 2025
The adviser credited better fiscal management and timely repayments for the significant slowdown in debt growth throughout 2025. He emphasized that Pakistan’s improved financial discipline is a key factor in these positive trends. Looking ahead, the country expects to benefit from lower global borrowing costs, which will make future financing more affordable.
In summary, Pakistan’s timely Eurobond repayment signals improved economic stability and growing investor confidence. These developments boost Pakistan’s credibility in global markets and pave the way for sustainable financial management.