Pakistan plans fresh Eurobond, Sukuk issues to refinance external debt

Pakistan plans to issue fresh Sukuk, Eurobonds and its first dollar-settled rupee-linked bonds as part of efforts to return to international capital markets and extend the maturity profile of its external debt, Finance Minister Muhammad Aurangzeb said on Tuesday.

Speaking at the Pakistan Banking Summit 2026, Aurangzeb said the government had issued requests for proposals for the planned instruments.

He said many of the new instruments would be used to replace earlier debt rather than add to the country’s overall debt stock.

Pakistan returned to global capital markets in April 2026 after a four-year gap, placing a Eurobond and increasing the issue size to $750 million through the greenshoe option due to strong demand.

In May 2026, Pakistan issued its first Panda bond worth $250 million. The bond was oversubscribed five times and carried what officials described as a record-low borrowing cost for a three-year issue.

PBA Chairman Zafar Masud said banks had made progress in priority-sector financing, digital transformation and financial inclusion.

Minister of State for Finance Bilal Azhar Kayani said the government was advancing its roadmap for a cashless Pakistan through digital payments, technology and public-private coordination.

State Bank Deputy Governor Saleem Ullah said the central bank aimed to expand SME access to finance and strengthen the sector’s role in inclusive and sustainable economic growth.