Pakistan plans to return to international capital markets with fresh Eurobonds, Sukuk, and its first dollar settled, rupee linked bonds as the government seeks to refinance maturing debt and extend the repayment profile of its external liabilities.
Finance Minister Muhammad Aurangzeb announced the plan while addressing the Pakistan Banking Summit 2026, saying the government has issued requests for proposals (RFPs) for the three debt instruments.
“We have just issued RFPs for Sukuk, Eurobonds, and, for the first time, dollar settled rupee linked bonds,” Aurangzeb said, adding that the government wants to continue accessing international capital markets while extending the maturity of Pakistan’s external debt.
He emphasized that the planned issuances are intended to replace existing debt rather than increase Pakistan’s overall borrowing.
“These are not going to be incremental debt. They will largely replace earlier debt,” the finance minister said.
Pakistan reentered global capital markets in April 2026 after a four year gap by raising $750 million through a Eurobond, after exercising a greenshoe option due to strong investor demand. The government followed that with its inaugural $250 million Panda Bond in May, which was oversubscribed five times and achieved Pakistan’s lowest borrowing cost for a three year international bond.
Aurangzeb said Pakistan ended the last fiscal year with a primary surplus, one of its lowest fiscal deficits, a debt to GDP ratio below 70 percent, and 3.7 percent economic growth, driven by a recovery in large scale manufacturing.
He added that remittances are expected to reach between $41 billion and $42 billion this fiscal year. While overall exports declined, he said value added textile exports continued to post year over year growth.
The finance minister also announced the formation of a dedicated SME Finance Task Force, led by the State Bank of Pakistan (SBP), to improve access to bank financing for small and medium enterprises through collaboration with banks, business associations, and government institutions.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
