Pakistan’s economic turnaround story gained powerful new momentum this week, as the country’s record $3 billion Eurobond drew nearly $6 billion in investor orders and the State Bank’s foreign exchange reserves climbed to a historic high of $21.4 billion.
Pakistan’s record Eurobond: the key numbers
The dual-tranche sovereign bond, issued on September 3, comprised a $1.75 billion 5.5-year tranche at a 7.50 percent coupon and a $1.25 billion 10-year tranche at 7.90 percent, according to The News and Business Recorder. It is the largest-ever single international capital-market transaction by Pakistan, and the order book, almost twice the amount on offer, came from a broad, geographically diversified base of institutional investors across Asia, the Middle East, Europe and the Americas.
The issue was the first under Pakistan’s renewed Global Medium-Term Note Programme, following the inaugural Panda Bond, the country’s first foray into China’s domestic capital markets. The Finance Ministry framed the Eurobond as liability management: extending maturities, diversifying financing across regions and investor bases, and reducing refinancing risk.
From London to Karachi: a week of milestones
The international endorsement was on full display on September 29, when Prime Minister Shehbaz Sharif formally inaugurated the bond at the London Stock Exchange becoming the first Pakistani prime minister to open an LSE trading session. He was joined by LSE Group CEO David Schwimmer and Finance Minister Muhammad Aurangzeb. “As I speak, we have strengthened our macroeconomic indicators, which are very promising and augur very well for the future,” the prime minister said, according to Dawn and Business Recorder. He added that the finance team’s work to “arrange $3 billion worth of dual-tranche sovereign Eurobonds spoke volumes about their hard work, deep-rooted structural changes, the digitisation of the economy, and taking all the necessary measures to put their national economy back on track.”
Two days later, addressing a gong ceremony in Karachi virtually from Islamabad to mark the listing of the Naya Nazimabad Apartment REIT scheme on the Pakistan Stock Exchange, the prime minister laid out the numbers: Pakistan had issued the $3 billion Eurobond against offers worth $6 billion, SBP reserves had risen to around $21.4 billion with commercial banks holding another $5.5 billion, while remittances and IT exports continued to climb, WE News reported. Calling for “a decisive shift from economic stabilisation to sustainable growth, job creation and export expansion,” he said stabilisation alone was not sufficient.
Reserves at a historic high
SBP-held reserves reached $21,400.3 million for the week ended September 18 termed a historic high by the prime minister and rose to about $21.44 billion by September 25, according to mettisglobal.news and techjuice.pk. The sharp $3.06 billion jump in the week of September 11 came from the Eurobond proceeds themselves. The broader recovery is visible elsewhere too: remittances hit a record $41.6 billion in FY2025-26, up 8.6 percent from the previous year, The News reported. Pakistan remains on its 37-month, roughly $7 billion Extended Fund Facility approved by the IMF in September 2024, with the third review completed in May 2026 and a fourth review mission underway since late September.
What the Pakistan Eurobond means for ordinary Pakistanis
What does a Eurobond actually signal? As Business Recorder explains, it is simply an international debt security issued outside the country of the currency it is denominated in. The real message lies in the demand: a nearly two-times oversubscribed order book is a market-based vote of confidence. Finance Minister Aurangzeb said the deal reflected “renewed confidence in the country from international credit rating agencies, global financial markets and investors.”
For ordinary Pakistanis, the payoff is practical longer-dated financing eases refinancing pressure, record reserves cushion imports and the currency, and the confidence of global investors tends to ripple into domestic business sentiment. After years of firefighting, Pakistan’s economy is not just stable; investors are now betting on its future.
Sources: WE News, Dawn, Business Recorder, The News
Umar is an engineer by profession and a passionate writer by passion. He has a deep interest in sharing good news related to Pakistan and has been working hard to promote the positive image of his homeland. Umar has written numerous articles on various topics related to Pakistan, such as technology, sports, culture, and economy.