Pakistan decides to increase Eurobond issuance to over $1 billion

BusinessMust ReadPakistan decides to increase Eurobond issuance to over $1 billionBy Shoaib Nizami-Apr 21, 2026ISLAMABAD: Pakistan has decided to increase its Eurobond issuance to $1 billion from $750 million, sources said on Tuesday, a day after the government had raised the issuance size from $500 million to $750 million. According to Ministry of Finance sources, the federal government will issue an additional $250 million in Eurobonds as part of the expanded plan. The total Eurobond issuance may now expand to $1 billion or more, depending on financing requirements, sources added. They further said that additional bonds may be issued within the next two months of the current fiscal year based on funding needs. So far, Pakistan has issued $750 million worth of bonds in the international market. Sources indicated that the additional Eurobonds will carry a yield of below 7 %. The issuance is being carried out under a medium-term note programme with a three-year maturity period. Officials described the Eurobond issuance as a reflection of improving confidence in Pakistan’s economy, saying it would strengthen the country’s presence in international bond markets. Initially launched at $500 million, the three-year Eurobond attracted strong interest from international investors, prompting the government to increase the size of the offering and broaden participation. Pakistan has re-entered international capital markets after a four-year gap, marking an important step toward rebuilding external financing channels. The additional allocation through the green shoe mechanism reflects continued investor confidence in Pakistan’s macroeconomic outlook and its sovereign debt instruments. The strong response helped improve liquidity and depth in Pakistan’s sovereign yield curve, while also strengthening the country’s position in global debt markets. The oversubscription signals renewed appetite among global investors for Pakistani debt, despite ongoing economic challenges. The suc...