Pakistan has repaid its $500 million Eurobond on schedule, with the government saying the timely servicing reflects fiscal discipline, stronger reserves, improved ratings, and a more sustainable debt profile.<\/p>\n
The bond, meant to raise funds from global investors, was issued in 2015 with a 10-year tenor and matured on September 30 this year.<\/p>\n
Taking to the X platform, Adviser to the Finance Minister Khurram Schehzad announced the development, saying, \u201cTimely debt servicing remains business as usual, reflecting the country\u2019s commitment to financial discipline.\u201d<\/p>\n
He said the development was encouraging as it comes at a time when external buffers and liquidity have improved, sovereign ratings have been raised, and investor confidence is rising, with Pakistan\u2019s bonds recently trading at a premium.<\/p>\n
Schehzad further said that the debt-to-gross domestic product (GDP) ratio had improved from 77 per cent in FY20 to 70pc in FY25.<\/p>\n
\u201cExternal debt\u2019s share in total public debt has declined from 38pc to 32pc in FY25, reducing FX vulnerability,\u201d Schehzad added. \u201cDebt growth has moderated sharply in FY25 versus in earlier years.\u201d<\/p>\n
Looking ahead, easing global borrowing costs, alongside stronger fundamentals, position Pakistan to access markets on more competitive terms and continue building a more sustainable debt profile, he said.<\/p>\n
\u201cThis is a steady step forward \u2014 repayment as expected, but with stronger fundamentals, improved investor sentiment, and a more resilient outlook.\u201d<\/p>\n
Pakistan faced a prolonged economic crisis over the last few years, marked by critically low<\/a> foreign exchange reserves, an acute balance-of-payment crisis, and the looming risk of default<\/a> in 2023. The crisis was averted after the International Monetary Fund released<\/a> a crucial loan tranche, while support from friendly countries, including China<\/a>, the United Arab Emirates<\/a>, and Saudi Arabia<\/a>, also played a key role.<\/p>\n After averting default, Pakistan has undertaken tough IMF-prescribed reforms to stabilise its economy and bolster macroeconomic indicators. This year, global credit rating agencies like Fitch<\/a>, Moody\u2019s<\/a>, and S&P Global<\/a> raised Pakistan\u2019s sovereign credit rating.<\/p>\n","protected":false},"excerpt":{"rendered":"Pakistan has repaid its $500 million Eurobond on schedule, with the government saying the timely servicing reflects fiscal…\n","protected":false},"author":2,"featured_media":182511,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-182510","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/182510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=182510"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/182510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/182511"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=182510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=182510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=182510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}