Pakistan conducted its largest single international capital market transaction on September 3, 2026, raising $3 billion through a dual-tranche Eurobond sale. The offering attracted nearly $6 billion in orders from institutional investors across Asia, Europe, and the Americas, indicating strong international demand for Pakistani sovereign debt. This issuance follows recent sovereign credit-rating upgrades and represents the first under Pakistan's renewed Global Medium-Term Note (GMTN) Programme.
The Eurobond sale comprised two tranches: a $1.75 billion 5.5-year tranche with a coupon rate of 7.50% and a $1.25 billion 10-year tranche with a coupon rate of 7.90%. The order book was nearly two times oversubscribed, with substantial investor interest in the longer-dated 10-year instrument, which the Ministry of Finance highlighted as a powerful market-based signal of renewed confidence in Pakistan's medium- and long-term trajectory. Joint bookrunners for the offering included Citi, Deutsche Bank, Emirates NBD, MUFG, and Standard Chartered.
Finance Minister Senator Muhammad Aurangzeb described the transaction as a "positive development," reflecting renewed confidence from international investors in Pakistan's economy and its future direction. He emphasized that this was not an ad-hoc borrowing exercise but a core component of the government's broader debt-management strategy. The strategy aims to diversify financing sources, extend maturities, and reduce refinancing and rollover risks by replacing shorter-term, higher-cost obligations with longer-duration, competitively priced global capital.
The successful issuance, particularly the strong demand for the 10-year tenor, demonstrates Pakistan's improved ability to mobilize sizable longer-term financing as international investors reassess the country's macroeconomic and credit fundamentals. Pakistan has seen three credit rating upgrades since April 2025 and has made progress in addressing its structural deficits, with the fiscal deficit declining to around 2.6% of GDP and three consecutive years of primary surpluses.
