Pakistan has successfully repaid a $500 million Eurobond that matured on September 30, 2025. The payment shows the country’s commitment to honoring international debt obligations despite economic challenges.
The announcement was made by Khurram Shahzad, adviser to the finance minister, through a post on social media platform X. He confirmed that the 10-year Eurobond, issued in 2015, was cleared in full and on time.
Shahzad described the repayment as proof of Pakistan’s financial discipline and its ability to meet global commitments. He added that improved foreign reserves and stronger liquidity have played a key role in restoring trust among investors.
According to the adviser, international institutions have responded positively to Pakistan’s fiscal management. The country’s sovereign credit rating has improved, further boosting its credibility in global markets. Investor sentiment is also showing an upward trend, with Pakistani bonds now trading at a premium.
Shahzad further explained that Pakistan’s debt-to-GDP ratio has fallen from 77 percent to 70 percent. The external share of government debt has also declined, moving from 38 percent to 32 percent. He credited better fiscal management and timely repayments for keeping debt growth low in 2025.
The adviser noted that these improvements highlight Pakistan’s efforts to stabilize its financial position. Strong repayment performance is helping the country maintain the confidence of international lenders and strengthen its economic outlook.
Looking ahead, Shahzad said Pakistan is likely to benefit from a global decline in borrowing costs. Lower financing costs will make it easier for the government to manage future loans and continue on a path of sustainable growth.
The successful repayment of the Eurobond not only fulfills a major financial obligation but also signals Pakistan’s resilience. Analysts believe that consistent repayments, combined with reduced debt levels, will further enhance the country’s position in international capital markets.
In other related news also read Pakistan has to repay $10.35bn in debt servicing till Dec.
