{"id":24792,"date":"2025-10-02T05:09:59","date_gmt":"2025-10-02T05:09:59","guid":{"rendered":"https:\/\/gsrra.com\/?p=24792"},"modified":"2025-10-02T05:10:09","modified_gmt":"2025-10-02T05:10:09","slug":"pakistan-repays-500m-eurobond-on-time-meets-all-obligations","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=24792","title":{"rendered":"Pakistan repays $500m Eurobond on time, meets all obligations"},"content":{"rendered":"\n<p><strong><em>Pakistan\u2019s debt-to-GDP ratio has declined from 77 per cent in FY20 to 70 per cent in FY25<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/i.tribune.com.pk\/media\/images\/et-mehak-371759309426-0\/et-mehak-371759309426-0-640x480.webp\" alt=\"finance minister chairs the kick off meeting with the visiting imf review mission at the finance division today source x\" title=\"finance minister chairs the kick off meeting with the visiting imf review mission at the finance division today source x\"\/><\/figure>\n\n\n\n<p>Finance Minister chairs the kick-off meeting with the visiting IMF Review Mission at the Finance Division today [Source: X]<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Pakistan has successfully repaid its $500 million International Bond (Eurobond) that matured on September 30, 2025, in line with all its obligations.<\/p>\n\n\n\n<p>Advisor to the Finance Minister Khurram Schehzad announced on X on Wednesday that the Eurobond, issued in 2015 to global investors with a 10-year tenor, was settled on time.<\/p>\n\n\n\n<p>\u201cThis repayment reflects Pakistan\u2019s ability and determination to honor its international obligations on schedule,\u201d Schehzad said. \u201cWhat makes it even more significant is that it comes at a time of improving fundamentals and investor sentiment.\u201d<\/p>\n\n\n\n<p>The announcement comes&nbsp;<a href=\"https:\/\/tribune.com.pk\/story\/2557929\/rating-upgrade-sparks-eurobond-rally\" target=\"_blank\" rel=\"noopener\">against<\/a>&nbsp;the backdrop of recent gains in Pakistan\u2019s economic indicators. External buffers and liquidity have strengthened, sovereign ratings have been upgraded, and investor confidence has picked up \u2014 with Pakistan\u2019s bonds trading at a premium in recent months.<strong><\/strong><\/p>\n\n\n\n<p>Debt sustainability metrics have also improved. Pakistan\u2019s debt-to-GDP ratio&nbsp;<a href=\"https:\/\/tribune.com.pk\/story\/2557929\/rating-upgrade-sparks-eurobond-rally\" target=\"_blank\" rel=\"noopener\">has<\/a>&nbsp;declined from 77 per cent in FY20 to 70 per cent in FY25. The share of external debt in total public debt has fallen from 38pc to 32pc, reducing foreign exchange vulnerabilities. Debt growth has also moderated sharply in FY25 compared to earlier years.<\/p>\n\n\n\n<p>Looking ahead, Pakistan is better positioned to re-enter international markets. \u201cEasing global borrowing costs, coupled with stronger fundamentals, give Pakistan room to access capital on more competitive terms and build a more sustainable debt profile,\u201d Schehzad added.<\/p>\n\n\n\n<p>Pakistan\u2019s international bonds have been&nbsp;<a href=\"https:\/\/tribune.com.pk\/story\/2544619\/global-bonds-rally-despite-indo-pak-escalation\" target=\"_blank\" rel=\"noopener\">on&nbsp;<\/a>an upward trajectory in recent months, aided by improving macroeconomic fundamentals. Following Standard &amp; Poor&#8217;s upgrade of Pakistan\u2019s sovereign credit rating to &#8216;B-&#8216; with a stable outlook in July 2025, bonds across the yield curve witnessed strong gains, with longer-tenor instruments rallying sharply. The 30-year bond maturing in 2051 rose over 10% month-to-date, while shorter maturities, including the 2025 and 2026 bonds, also edged higher.<\/p>\n\n\n\n<p>Investor confidence&nbsp;<a href=\"https:\/\/tribune.com.pk\/story\/2544619\/global-bonds-rally-despite-indo-pak-escalation\" target=\"_blank\" rel=\"noopener\">has<\/a>&nbsp;remained resilient even during periods of geopolitical tension. In May 2025, Pakistan\u2019s Eurobond and Sukuk prices posted notable gains despite Indo-Pak escalation, as yields declined by up to 61 basis points across tenors. Analysts attributed this to IMF programme progress, improved foreign reserves, and controlled inflation, which reduced default risk and attracted global investors.<strong><\/strong><\/p>\n\n\n\n<p>The momentum in global debt markets has been building&nbsp;<a href=\"https:\/\/tribune.com.pk\/story\/2452111\/global-bond-prices-double\" target=\"_blank\" rel=\"noopener\">since<\/a>&nbsp;2023. Pakistan\u2019s international bonds more than doubled in value after securing a $3 billion IMF bailout in June 2023, with investors expressing renewed confidence in reforms and the government\u2019s ability to service its debt. Analysts noted that the sharp rally in Eurobonds and Sukuks was driven by fiscal consolidation, current account improvements, and exchange rate stability.<\/p>\n\n\n\n<p>Reference Link:- https:\/\/tribune.com.pk\/story\/2569986\/pakistan-repays-500m-eurobond-on-time-meets-all-obligations; <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pakistan\u2019s debt-to-GDP ratio has declined from 77 per cent in FY20 to 70 per cent in FY25 Finance Minister chairs the kick-off meeting with the visiting IMF Review Mission at the Finance Division today [Source: X] Pakistan has successfully repaid its $500 million International Bond (Eurobond) that matured on September 30, 2025, in line with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[23991,23999,23997,24000,24008],"tags":[2076,24045,23734,483,24046,24047],"class_list":["post-24792","post","type-post","status-publish","format-aside","has-post-thumbnail","hentry","category-asia","category-economic-trends","category-global-issues","category-international-trade","category-opinion-commentary","tag-economy-2","tag-eurobond","tag-finance-2","tag-pakistan-2","tag-repayment","tag-stableity-and-growth","post_format-post-format-aside"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/24792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24792"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/24792\/revisions"}],"predecessor-version":[{"id":24795,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/24792\/revisions\/24795"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/24794"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}