Pakistan is preparing to return to international capital markets with a new round of debt issuances. The government plans to launch fresh Eurobonds, Sukuk, and its first-ever dollar-settled, rupee-linked bonds. The move aims to refinance maturing debt and improve the repayment profile of the country’s external liabilities.
Finance Minister Muhammad Aurangzeb announced the plan while speaking at the Pakistan Banking Summit 2026. He said the government has already issued requests for proposals (RFPs) for all three financial instruments. According to the minister, these issuances are part of the government’s long-term debt management strategy.
Aurangzeb said Pakistan wants to maintain regular access to international capital markets. He explained that the new borrowing will mainly replace existing debt instead of adding new financial obligations. The government intends to extend the maturity period of its external debt and reduce refinancing risks.
The finance minister stressed that the planned issuances will not increase the country’s overall debt burden. Instead, they will refinance debt that is already due for repayment. This approach is designed to improve debt management while maintaining financial stability.
Pakistan returned to global capital markets in April 2026 after a gap of four years. During that return, the government raised $750 million through a Eurobond. Strong investor demand allowed authorities to exercise a greenshoe option and increase the size of the offering.
In May 2026, the government launched its first $250 million Panda Bond. The bond received strong interest from investors and was oversubscribed five times. It also secured the country’s lowest borrowing cost for a three-year international bond, according to the finance minister.
Aurangzeb also highlighted several positive economic indicators. He said Pakistan ended the previous fiscal year with a primary budget surplus. The fiscal deficit remained among the lowest in recent years. He added that the country’s debt-to-GDP ratio fell below 70 percent.
The minister said the economy recorded 3.7 percent growth, supported by a recovery in large-scale manufacturing. He noted that improved industrial activity contributed to stronger economic performance during the year.
He also shared an update on overseas remittances. According to Aurangzeb, remittances are expected to reach between $41 billion and $42 billion during the current fiscal year. These inflows continue to play an important role in supporting Pakistan’s foreign exchange reserves.
While overall exports declined, the minister said value-added textile exports continued to grow compared to the previous year. He noted that higher-value exports remain an important area for future economic growth.
The finance minister also announced the creation of a dedicated SME Finance Task Force. The task force will be led by the State Bank of Pakistan (SBP). It will work with commercial banks, business associations, and government institutions to improve financing for small and medium-sized enterprises.
Officials believe easier access to bank credit will help businesses expand and create more jobs. The initiative is also expected to strengthen the country’s private sector and support sustainable economic growth.
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The government’s latest financing strategy reflects its efforts to manage external debt more efficiently while maintaining investor confidence. By refinancing existing obligations and improving access to global markets, Pakistan aims to strengthen its financial position without increasing its overall debt burden.
