Key facts
- Pakistan raised a record $3 billion in its largest-ever international bond sale.
- The bond sale was a dual-tranche Eurobond.
- Finance Minister Muhammad Aurangzeb stated the transaction reflects external validation from rating agencies.
- Pakistan has secured three credit-rating upgrades since April last year.
- Investors spanned Asia, the Middle East, Europe, and the United States.
- The tax-to-GDP ratio has increased from 8.1% to 10.3%.
Pakistan has successfully raised $3 billion through its largest-ever international bond sale, a dual-tranche Eurobond, signaling a strategic shift away from government-to-government (G2G) borrowing towards commercial financing. Finance Minister Muhammad Aurangzeb shared the development, emphasizing that the transaction reflects external validation from rating agencies, noting Pakistan has secured three credit-rating upgrades since April last year. The bond sale attracted a diverse investor base across Asia, the Middle East, Europe, and the United States, demonstrating renewed international confidence in Pakistan's economy. Aurangzeb also indicated Pakistan's interest in exploring Sukuks, rupee-denominated dollar-settled bonds, and Panda Bonds as strategies to repay expensive short-term debt and reduce rollover risks. He underscored the country's commitment to fiscal discipline, with the fiscal deficit at a 22-year low and three consecutive years of primary surpluses. The tax-to-GDP ratio has improved from 8.1% to 10.3%. Minister of State for Finance Bilal Azhar Kayani reiterated the importance of domestic resource mobilization, while Chairman FBR Rashid Mahmood Langrial detailed ongoing reforms within the tax authority.