In the aftermath of securing improved notches from international credit rating agencies, Pakistan has kick-started the process for launching a $2 billion Eurobond with five-year and 10-year tenors. Islamabad plans to generate a few billion dollars through medium- to long-term borrowing at the Secured Overnight Financing Rate (SOFR) plus the country's risk premium, with the intention of returning bilateral loan deposits either to China or the Kingdom of Saudi Arabia, for which the country's top leadership has had to make formal requests after a pause of a few months during the course of every financial year.
"The timing of launching this process is very important as good news emerged on the geopolitical level on account of the strengthening of the Makkah Defence Agreement, a favourable decision on the Indus Waters Treaty and improved credit ratings from two international rating agencies. The financial advisor selected by Pakistan has undertaken its homework and advised the country to launch the process for conducting roadshows, probably in London, Washington and the Gulf region," top official sources in the Finance Division confirmed. Khurram Shahzad, Adviser to the Ministry of Finance, stated in a social media post that the Ministry of Finance and Revenue had launched the process for a US dollar benchmark dual-tranche Eurobond offering across long five-year and 10-year tenors, subject to market conditions.
"The transaction follows successive sovereign credit-rating upgrades, stronger macroeconomic fundamentals and improved investor confidence - marking another important step in Pakistan's renewed access to international capital markets," he added. Official sources said in background discussions that the exact size of the Eurobond would be ascertained after taking into account the interest shown by international investors. However, the Ministry of Finance, in its budget documents for the fiscal year 2025-26, had mentioned that it would launch $2 billion in international bonds during the current fiscal year.
Citi, Deutsche Bank, Emirates NBD Capital, MUFG and Standard Chartered have been appointed as joint lead managers and bookrunners for the upcoming transaction by Pakistan. Pakistan returned to international capital markets in April 2026 after a four-year hiatus, raising $750 million through a three-year Eurobond priced at a 6.975 percent yield.