Pakistan is preparing to re-enter the. Eurobond market for the first time in almost five years as part of its plan to raise much-needed foreign funds. The federal government has decided to issue dollar-denominated bonds next year. signaling a cautious but confident return to global debt markets.
According to Bloomberg, the move comes after years of financial uncertainty and strict reforms under the International Monetary Fund (IMF) program. Advisor to the Finance Minister Khurram Schehzad said the government is also considering issuing Yuan-denominated bonds later this year. with a target of raising $250 million through the Chinese market.
Experts say the decision reflects Pakistan’s growing investor confidence. The IMF’s support, along with improved fiscal management and external financing prospects, has helped stabilize the economy and attract global interest. As a result, Pakistan’s existing dollar bonds have surged by 24 percent in 2025 — the highest performance among Asian economies.
The return to global capital markets marks an important milestone for Pakistan. The country last issued international bonds in 2020 but stayed away afterward due to political instability, rising inflation, and a severe balance-of-payments crisis. With improved reserves and better credit outlook, policymakers now see an opportunity to diversify funding sources and reduce pressure on domestic borrowing.
Investor demand has also strengthened due to easing global financial conditions. Analysts expect that possible US Federal Reserve rate cuts next year will lower borrowing costs for developing economies. Giving Pakistan and similar countries easier access to external capital. This trend could help Pakistan rebuild confidence among international investors seeking higher yields in emerging markets.
While challenges remain — including debt sustainability, currency volatility. And inflation management — economic experts see the planned bond issuance as a positive step. It signals Pakistan’s intent to re-engage global investors and rebuild credibility after a long absence from international markets.
According to BBC, Dawn, and Wikipedia. Eurobonds are a common way for countries to raise foreign currency funding through global investors. For Pakistan, success in this venture could ease fiscal pressure and support ongoing reforms in the energy and financial sectors.
In my view, Pakistan’s comeback to the Eurobond market is a sign of regained economic confidence. It will test the country’s ability to maintain discipline and attract long-term capital. If managed carefully, this step could boost foreign exchange reserves and help stabilize the rupee. Offering much-needed relief to the national economy.
Published by: Business Desk | The Hub of Info
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