Pakistan plans Eurobond return in 2026

October 22, 2025 (MLN): Pakistan is preparing to re-enter international capital markets in 2026 with the issuance of a Eurobond under its Global Medium-Term Note (GMTN) program.

The plan was shared during a meeting between Finance Minister Muhammad Aurangzeb and delegation of German investors and businessmen, led by German Ambassador to Pakistan Ina Lepel, said a press release issued.

During the discussion, the finance minister outlined Pakistan’s strategy to re-engage with global investors, including the planned launch of the country’s first Panda Bond in China’s capital market and a return to the Eurobond market under the GMTN program in 2026.

This follows Pakistan’s successful repayment of a $500 million Eurobond, which matured on September 30, 2025. Originally issued in 2015 with a 10-year tenor, the bond’s full repayment demonstrated the country’s improving fiscal discipline and credibility in global financial markets.

Aurangzeb briefed the German delegation on Pakistan’s progress in restoring fiscal and external stability, highlighting a series of reforms aimed at strengthening the economy and attracting foreign investment.

Welcoming the visitors, the finance minister appreciated the efforts of the AHK German Bilateral Chamber of Commerce for connecting established and emerging German investors with Pakistan’s evolving business landscape.

He invited German businesses to explore investment opportunities in technology, energy, and manufacturing, noting that Pakistan’s improving macroeconomic indicators and reform momentum have been externally validated by leading credit rating agencies Fitch, S&P, and Moody’s  all of which have upgraded Pakistan’s outlook in recent months.

Aurangzeb added that the recent IMF staff-level agreement, concluded after a comprehensive review mission, further reflects international confidence in Pakistan’s economic direction and policy reforms.

On the energy sector, the minister shared that 34 state-owned enterprises (SOEs) have been transferred to the Privatization Commission, with tangible progress underway. He noted that the privatisation of Pakistan International Airlines (PIA) is advancing, with four major international conglomerates currently conducting due diligence.

He emphasised that Pakistan’s strengthening economic fundamentals, alongside positive geopolitical developments and renewed engagement with key global partners including Europe, China, the United States, and Gulf nations are creating a favourable environment for foreign direct investment and business-to-business collaboration.

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