Senator Muhammad Aurangzeb, Pakistan’s Finance Minister, has reassured investors and business leaders that the government remains committed to meeting its external debt obligations, following the successful settlement of a $500 million Eurobond on September 30. Speaking at the Pakistan Business Summit in Peshawar, under the theme “Shaping What’s Next,” Aurangzeb emphasized that the country is fully prepared to honor the upcoming $1.3 billion Eurobond due in April 2026.
The Finance Minister noted that the recent $500 million payment was executed without disrupting financial markets, showcasing Pakistan’s strengthened fiscal management and operational readiness. “We repaid $500 million Eurobond on September 30 without disrupting the market,” he said, adding, “We are confident we can honor the $1.3 billion Eurobond due in April 2026.”
Aurangzeb highlighted several positive developments in Pakistan’s macroeconomic landscape that underpin this confidence. Financing costs have declined, foreign exchange reserves have risen to cover nearly three months of imports, and exchange rates remain stable—all of which contribute to rebuilding investor trust in the market. Additionally, remittances reached USD 38 billion last year and are projected to rise to USD 41–43 billion in the current fiscal year, reflecting robust foreign inflows that support the country’s balance of payments.
Addressing the summit audience, which included business leaders and policymakers, the Finance Minister underscored the importance of broad economic reforms. These include tax restructuring by separating policy formulation from administration, privatizing state-owned enterprises, reforming energy pricing, reducing tariffs to boost exports, and encouraging foreign investment. Such measures, he argued, are crucial for sustaining macroeconomic stability and promoting inclusive growth across Pakistan.
Aurangzeb also revealed that Pakistan plans to issue its first Panda Bond before the end of 2025. This strategic initiative aims to access China’s larger capital markets, diversify funding sources, and attract long-term foreign investment to support development projects. He emphasized that the government intends to allocate the Rs. 4.3 trillion national development budget across critical sectors, including infrastructure, health, and education, while fostering closer cooperation between federal and provincial authorities.
While optimistic about economic progress, the Finance Minister acknowledged significant challenges ahead. Issues such as climate change, rapid population growth, child stunting, and learning poverty continue to pose threats to productivity and sustainable development. Aurangzeb stressed that reforms must be inclusive to translate macroeconomic gains into tangible benefits for the population, ensuring that growth reaches every segment of society.
In conclusion, the Finance Minister’s statements at the summit serve as a clear signal to local and international investors that Pakistan is proactively managing its debt obligations while advancing structural reforms and enhancing investor confidence. With proactive fiscal planning, robust remittance inflows, and targeted economic reforms, Pakistan is positioning itself to meet both immediate and long-term financial commitments without jeopardizing market stability.
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