Pakistan is set to return to the international debt market by issuing a Eurobond in 2026, Bloomberg reported. The move comes after nearly five years of absence from global bond markets and aims to diversify the country’s funding sources.
Khurram Schehzad, adviser to the finance minister, confirmed Pakistan’s plan to re-enter the Eurobond market but did not share specific details. He also noted that the government plans to issue Panda bonds this year. The last Eurobond issuance by Pakistan took place in 2021.
Finance Minister Muhammad Aurangzeb stated the upcoming Eurobond will be issued under Pakistan’s Global Medium-Term Note (GMTN) program. The government’s decision is expected to strengthen investor confidence and support sovereign debt management.
In September 2025, Pakistan successfully repaid a $500 million Eurobond issued in 2015. Bloomberg highlighted that Pakistan’s dollar bonds have surged 24% this year, marking the strongest performance among Asian markets. Experts attribute this rise to easing global financial conditions and anticipated rate cuts by the U.S. Federal Reserve, which create favorable conditions for frontier economies to access international funding.
The government’s economic progress has also been recognized by major credit rating agencies. Fitch, S&P, and Moody’s have recently upgraded Pakistan’s outlook, signaling improved investor confidence.
Alongside the Eurobond, Islamabad plans to raise $250 million through yuan-denominated Panda bonds this year. Additionally, the country secured $1 billion in financing from Middle Eastern banks in June, after a two-year gap.
The 2026 Eurobond issuance is considered a key step for Pakistan to diversify its financing portfolio, enhance fiscal stability, and attract international investors. It also provides the government with additional resources to manage debt and support economic growth.
In other related news also read Pakistan Successfully Repays $500M Eurobond On Time
This strategic return to the global bond market highlights Pakistan’s commitment to financial discipline and its efforts to strengthen ties with international investors through transparent and well-structured debt offerings.
