Pakistan has cleared a major financial milestone by repaying its $500 million Eurobond that matured on September 30, 2025. The Ministry of Finance confirmed the repayment on Wednesday, calling it a sign of continued financial discipline.
Khurram Schehzad, Advisor to the Finance Minister, announced the update on X. He said the bond repayment was completed on schedule, fulfilling all obligations. The bond was issued in 2015 with a 10-year tenor and matured on September 30.
Update: 🇵🇰 Pakistan Maintains Steady Debt Servicing, Amid Strengthening Fundamentals and Improving Outlook
Pakistan’s has successfully repaid its $500mn International Bond (Eurobond) due on 30 Sep 2025 – as scheduled, in line with all its obligations.
Issued in 2015 to…
— Khurram Schehzad (@kschehzad) October 1, 2025[1]
Schehzad noted that timely debt servicing highlights Pakistan’s growing economic stability. He added that the repayment comes as external buffers improve, liquidity strengthens, and investor confidence rises. Pakistan’s bonds are now trading at a premium, showing a shift in market sentiment.
The advisor shared updated debt figures as well. Pakistan’s debt-to-GDP ratio has fallen from 77% in FY20 to 70% in FY25. The share of external debt in public debt has dropped from 38% to 32%, lowering foreign exchange risks. Debt growth has also slowed sharply this year compared to earlier periods.
Looking ahead, Schehzad said easing global borrowing costs and stronger fundamentals will help Pakistan secure financing on better terms. This could allow the country to build a more sustainable debt profile while keeping investor trust intact.
Meanwhile, foreign exchange reserves have shown modest gains. Reserves held by the State Bank of Pakistan rose by $22 million in the week ending September 19, reaching $14.38 billion.
At the same time, the government continues discussions with the International Monetary Fund. Talks cover the second review of the $7 billion Extended Fund Facility and the first review of the Resilience and Sustainability Facility.
References
- ^ October 1, 2025 (twitter.com)