Saira Imran Pakistan successfully repaid $500 million Eurobond on September 30, 2025. The Ministry of Finance confirmed the payment on Wednesday. Officials said Pakistan cleared the bond on time and followed the agreed schedule.
Timely Repayment Builds Investor Confidence
Adviser to the Finance Minister, Khurram Shehzad, announced on social media platform X that Pakistan had honored its international bond obligations without delay.
“Pakistan has successfully repaid its $500 million Eurobond, which matured on September 30, 2025, as per all commitments,” he said.
The Eurobond was originally issued in 2015 with a 10-year maturity period. Shehzad emphasized that timely debt servicing reflects Pakistan’s commitment to fiscal discipline and responsible financial management.
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A Positive Step Amid Improving Economic Indicators
According to Shehzad, the repayment comes at a time when Pakistan’s foreign exchange reserves and liquidity have shown signs of improvement. He also highlighted progress in the country’s sovereign credit ratings and an increase in investor trust.
“This is an encouraging development, as it shows that Pakistan is becoming financially stronger while reducing its external vulnerabilities,” Shehzad added.
Debt-to-GDP Ratio Declines
Shehzad further explained that Pakistan’s debt-to-GDP ratio has improved in recent years. In fiscal year 2020, the ratio stood at 77 percent, while in fiscal year 2025 it declined to 70 percent.
Similarly, the share of external debt in total public debt has also dropped—from 38 percent to 32 percent. This reduction, he said, has helped minimize risks linked to foreign exchange pressures.
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Slower Growth in Debt Levels
The government official noted that the growth rate of public debt in fiscal year 2025 has been lower compared to previous years. He said that better macroeconomic fundamentals and falling international borrowing costs would allow Pakistan to access global markets on more competitive terms in the future.
“This will help the country build a more sustainable debt structure in the coming years,” Shehzad said.
Foreign Reserves Show Stability
According to the State Bank of Pakistan (SBP), foreign exchange reserves have shown some stability in recent weeks. As of September 19, 2025, the central bank’s reserves increased by $22 million, reaching $14.38 billion.
Economic experts believe that such developments can strengthen Pakistan’s position in ongoing talks with international financial institutions.
Ongoing Talks with IMF
At present, the government is engaged in discussions with the International Monetary Fund (IMF) regarding the second review of the $7 billion Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF).
Officials expect that the timely Eurobond repayment and improving reserves will support Pakistan’s case in these negotiations, possibly leading to favorable outcomes.
Move Toward Sustainable Financial Future
Pakistan’s successful Eurobond repayment marks an important step in restoring global market confidence. With declining debt ratios, stabilizing reserves, and ongoing reforms, the country aims to move toward a more sustainable financial future.
