Pakistan has awarded its million 500 million eurobonds, which was strengthened on September 30, 2025. The bond was originally released in 2015 with a period of 10 years and was fully determined.
The development was confirmed by Finance Minister’s Advisor Khurram Shahzad, who confirmed it through a post on X.
The move shows the government’s financial discipline at a time when Pakistan’s basic principles are strengthening by improving external buffers and liquidity, and an independent classification has been increased (including upgrades to Moody’s CAA 1). Investors’ confidence is also increasing, Pakistan’s bonds have been copied in a premium.
Recently, the GOP received $ 4.5 billion in Islamic finance with domestic banks to deal with the power sector loans and reduce financial pressure according to the IMF conditions. In July 2025, S&P Global upgraded Pakistan’s sovereignty in CCC+ B. – with a stable outlook, referring to financial matters and improvement in external buffers.
Pakistan’s debt has reduced the proportion of GDP from 77 % in fiscal year 20 to 70 % in the financial year 25. The share of external debt in total public debt has dropped from 38 % to 32 %, which reduces the risk of foreign exchange shock, while the loan growth has decreased significantly in fiscal year 25 compared to the first year.
However, important challenges are ahead. Pakistan faces 25.9 billion in external debt payments in fiscal year 26. It is expected that about $ 16 billion will be eliminated, with the principal billion left 6 billion and $ 4 billion interest.
Paying the euro bound increases the government’s efforts to restore the reputation, but the dependence of maintaining this pace will be greatly dependent on making considerable structural changes, improving the revenue recovery, and gaining a stable arrival through multilateral and bilateral sources.