Pakistan has raised $500 million through a three-year Eurobond, marking its return to international capital markets after a four-year gap, a government adviser said on Friday, in a sign of improving investor sentiment toward the country’s economy.
The issuance comes as Islamabad seeks to rebuild its presence in global debt markets following years of economic strain and external financing challenges, while positioning itself to diversify funding sources and strengthen its sovereign yield curve.
“Pakistan has successfully returned to the international capital markets after a four-year hiatus, with the issuance of a $500 million Eurobond today,” Khurram Schehzad, an adviser to the finance ministry, said in a post on X, adding the bond was issued at “attractive terms” under the government’s Global Medium-Term Note Program.
He said the bonds attracted strong investor demand despite ongoing global market volatility and geopolitical tensions.
The transaction is expected to add liquidity to Pakistan’s sovereign yield curve and support the development of pricing benchmarks for future debt issuances.
Pakistan last tapped international bond markets in 2022 and has since relied on bilateral and multilateral financing, including support from the International Monetary Fund, to stabilize its economy.
Schehzad said authorities were planning further engagement with global markets, including potential international sukuk and panda bond offerings.
“With macroeconomic stability taking hold, structural reforms advancing, and growth momentum gradually strengthening, with opening of the Straight of Hormuz and energy prices correcting, Pakistan’s timely return to global markets reflects improving fundamentals and renewed investor confidence with Stable to Positive economic outlook,” he added.