Pakistan is preparing to make a comeback to international capital markets in 2026 through the issuance of a Eurobond under its Global Medium-Term Note (GMTN) program, marking a strategic move to re-engage global investors and strengthen its financial position.
The development was shared during a high-level meeting between Muhammad Aurangzeb, the country’s finance minister, and a delegation of German investors and businessmen led by Ina Lepel, the German Ambassador to Pakistan. The plan highlights the government’s efforts to attract foreign investment and deepen international financial partnerships.
Aurangzeb outlined a comprehensive strategy aimed at increasing Pakistan’s access to global capital markets. This includes not only the planned Eurobond issuance but also the launch of the country’s first Panda Bond in China’s capital market. These steps are part of a broader roadmap to diversify funding sources, ease external financing pressures, and build investor confidence.
The government’s renewed engagement follows the successful repayment of a $500 million Eurobond that matured on September 30, 2025. Originally issued in 2015 with a 10-year tenor, the bond’s full repayment underscored the country’s improving fiscal discipline and reinforced its credibility in the eyes of global investors.
During the meeting, Aurangzeb briefed the German delegation on the series of fiscal and economic reforms that have been undertaken to stabilize the economy. He stressed that Pakistan is entering a new phase of economic consolidation and growth, driven by structural changes and targeted policy measures.
The minister acknowledged the role of the AHK German Bilateral Chamber of Commerce in facilitating stronger commercial ties and creating investment bridges between German businesses and Pakistan’s evolving market landscape. He invited German companies to explore new opportunities in technology, energy, and manufacturing sectors, highlighting the country’s strategic location and improving macroeconomic indicators.
Aurangzeb also noted that recent upgrades in Pakistan’s outlook by leading credit rating agencies Fitch Ratings, S&P Global Ratings, and Moody’s Corporation have reinforced investor trust. These improvements follow macroeconomic stabilization measures, fiscal reforms, and progress under the International Monetary Fund program.
The minister pointed out that the successful conclusion of the latest IMF staff-level agreement reflects growing international confidence in Pakistan’s economic trajectory and reform agenda. He emphasized that such agreements not only provide fiscal space but also improve the country’s ability to attract capital flows and investments from strategic partners.
In addition, Aurangzeb shared updates on ongoing structural reforms in the energy and state-owned enterprises sector. He revealed that 34 SOEs have been transferred to the Privatization Commission of Pakistan to accelerate privatization efforts. Among these, the privatization process of Pakistan International Airlines is progressing, with four major international conglomerates currently conducting due diligence.
The government believes that the strengthening of economic fundamentals, combined with geopolitical developments and renewed engagement with key partners in Europe, China, the United States, and Gulf nations, is creating a conducive environment for foreign direct investment. The return to the Eurobond market in 2026 is expected to play a key role in broadening Pakistan’s funding base and restoring global investor confidence.
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