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Pakistan Repays $500 Million Eurobond On Time as It Prepares New Bond Sales

Officials say the payment underscores improved liquidity, strengthening Pakistan’s credit outlook.

Overview

  • A 10-year Eurobond issued in 2015 matured on September 30 and was repaid on schedule, Adviser to the Finance Minister Khurram Schehzad announced.
  • Finance ministry planning points to a $400 million international bond issuance as the government manages external obligations reported at about $1.8 billion in Eurobond maturities this fiscal year.
  • Official documents indicate Pakistan aims to diversify funding with yuan‑denominated Panda bonds placed in China’s National Interbank Market, alongside proposed sugar and sustainable bonds.
  • Authorities highlight stronger external buffers, recent sovereign rating upgrades, and Pakistani bonds trading at a premium as signs of improved market confidence.
  • Schehzad cites a decline in the debt‑to‑GDP ratio to 70% from 77% and a drop in external debt’s share of public debt to 32% from 38%, while analysts say the repayment eases near‑term default risk.