ISLAMABAD (October 1, 2025) — Pakistan has successfully repaid a $500 million Eurobond on its maturity date, marking what officials describe as a demonstration of the country’s improving financial discipline and growing investor confidence.
The 10-year Eurobond, originally issued in 2015, matured on September 30. Finance Advisor Khurram Shahzad confirmed that repayment was made on time, a move he said reflects the government’s commitment to meeting its debt obligations despite ongoing economic pressures.
“Timely repayment of international loans highlights Pakistan’s financial discipline,” Shahzad said, adding that foreign exchange reserves and liquidity have improved in recent months. He noted that global rating agencies have responded positively by upgrading Pakistan’s sovereign outlook, while investor sentiment has strengthened, with the country’s bonds now trading at a premium.
According to Shahzad, the government has also made headway in reducing its overall debt burden. Pakistan’s debt-to-GDP ratio, he said, has fallen from 77 percent to 70 percent, while the share of external debt in total government liabilities has declined from 38 percent to 32 percent.
He further pointed out that debt accumulation slowed considerably during fiscal year 2025. With borrowing costs easing globally, Pakistan is expected to benefit from lower interest rates on future debt, which could provide additional relief for the economy.
The repayment comes at a time when Pakistan is under close scrutiny from international lenders, particularly the International Monetary Fund (IMF), as the government works to balance debt servicing needs with measures to stabilize growth.
