Pakistan is preparing to return to international capital markets with fresh Eurobonds, Sukuk, and its first dollar-settled rupee-linked bonds as the government looks to refinance maturing debt and extend the repayment profile of its external liabilities.
Finance Minister Muhammad Aurangzeb announced the plan while speaking at the Pakistan Banking Summit 2026, saying the government has already issued requests for proposals 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 Pakistan wants to maintain access to global markets while lengthening the maturity of its external debt.
He said the planned issuances are meant to replace existing obligations rather than increase overall borrowing.
“These are not going to be incremental debt. They will largely replace earlier debt,” the minister said.
Pakistan reentered global capital markets in April 2026 after a four-year gap, raising $750 million through a Eurobond after exercising a greenshoe option on the back of strong investor demand. The government later launched its inaugural $250 million Panda Bond in May, which was oversubscribed five times and secured 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 economic growth of 3.7 percent, supported by a recovery in large-scale manufacturing.
He added that remittances are projected to reach between $41 billion and $42 billion in the current fiscal year. While overall exports declined, he said value-added textile exports continued to post year-on-year growth.
The finance minister also announced the formation of a dedicated SME Finance Task Force, to be led by the State Bank of Pakistan, aimed at improving access to bank financing for small and medium-sized enterprises through coordination with banks, business associations and government institutions.
