Pakistan is preparing to raise fresh funds from international capital markets by issuing new Eurobonds, Sukuk, and, for the first time, dollar-settled, rupee-linked bonds as part of its strategy to refinance existing external debt and improve its debt repayment profile.
Speaking at the Pakistan Banking Summit 2026, Finance Minister Muhammad Aurangzeb announced that the government has invited proposals from financial institutions for all three debt instruments.
According to the finance minister, the planned bond issuances are aimed at replacing maturing debt rather than adding to Pakistan’s overall external liabilities. He said the government’s focus is on extending debt maturities while maintaining access to international financial markets.
Aurangzeb noted that Pakistan successfully returned to global capital markets earlier this year after a four-year absence. In April 2026, the country raised $750 million through a Eurobond, with strong investor demand allowing the government to exercise a greenshoe option. A month later, Pakistan launched its first-ever $250 million Panda Bond, which attracted subscriptions worth five times the offered amount and secured the country’s lowest borrowing cost for a three-year international bond.
Highlighting recent economic performance, the finance minister said Pakistan closed the previous fiscal year with a primary budget surplus, one of its lowest fiscal deficits in recent years, a debt-to-GDP ratio below 70 percent, and economic growth of 3.7 percent, supported by a recovery in large-scale manufacturing.
He also projected that workers’ remittances would reach between $41 billion and $42 billion during the current fiscal year. While overall exports have declined, Aurangzeb said value-added textile exports continue to record year-on-year growth.
In addition, the finance minister announced the establishment of a dedicated SME Finance Task Force under the leadership of the State Bank of Pakistan (SBP). The task force will work with commercial banks, business associations, and government institutions to improve access to financing for small and medium-sized enterprises across the country.
