Finance Minister Senator Muhammad Aurangzeb confirmed on Wednesday that Pakistan is fully prepared to make its first $500 million Eurobond repayment due in September 2025, reaffirming the government’s commitment to meeting all external debt obligations on time.
Speaking at the post-budget press conference in Islamabad, the minister stated that a second Eurobond installment, due in March–April 2026, is also factored into Pakistan’s external financing roadmap. “We are not only equipped but confident in handling our international commitments,” he added.
In a key development, Senator Aurangzeb announced that Pakistan will launch its inaugural Panda Bond—a Chinese yuan-denominated bond issued in China’s capital markets—later this year. This will be Pakistan’s first entry into Chinese debt markets and is part of a wider effort to diversify funding sources.
To support the bond’s success, the government is working with the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) to secure credit enhancement, a guarantee mechanism that reduces risk and attracts more investors. Talks with both institutions are already in progress.
The minister also emphasized Pakistan’s strategic pivot to wider international markets. “Once our international credit ratings improve,” he said, “we aim to re-enter euro and US dollar bond markets by 2026—this is central to our long-term financial strategy.”
He underlined the importance of restoring investor confidence, stabilizing the economy, and ensuring sustainable financing pathways, especially as Pakistan prepares to negotiate a new long-term deal with the International Monetary Fund (IMF) in the coming months.