Overview
- The finance minister confirmed re-entry via a Eurobond Global Medium-Term Note program, closing a near five-year gap in external sovereign issuance.
- Authorities plan a yuan-denominated sale this year and target a Eurobond in 2026 to diversify funding sources.
- Pakistan’s dollar bonds have returned 24.5% so far in 2025, the strongest performance in Asia.
- S&P and Fitch raised the sovereign rating this year, and investors including Danske Bank, UBS Asset Management and Goldman Sachs Asset Management have increased exposure or voiced optimism.
- Analysts caution that higher energy costs and tensions with India and Afghanistan pose risks, though restored market access could ease refinancing worries over the next two to three years.