Pakistan repays $1.43 billion in debt, including Eurobond

Pakistan has fulfilled all international financial obligations by fully repaying Eurobond which were maturing on April 8,reported 24NewsHD TV Channel. 

According to an announcement, Finance Ministry has confirmed that Pakistan has repaid $1.30 billion Eurobond on time. Moreover, Pakistan also paid coupon dues of $126.125 million. The Ministry of Finance said the total payments by Pakistan exceed $1.426 billion. 

 Adviser to the Finance Minister Khurram Schehzad said on Tuesday said Pakistan repaid $1.43 billion in external debt, including a $1.3 billion Eurobond maturing on April 8. 

“As part of its routine course of external debt management, Pakistan has repaid its $1.3bn Eurobond maturing on April 8 — on schedule and in full,” he said in a post on the social media platform X.

 “Alongside, the country has also met $126.125 million in coupon obligations on other Eurobond issuances,” he said, adding that this brought total payments on Tuesday to “over $1.426bn”. “Debt servicing continues to be executed as a non-event — reflecting consistency, discipline, and strengthened capacity,” he said.

“The seamless execution of large external repayments underscores both capacity and consistency — reinforcing Pakistan’s credibility across global investors and financial institutions,” he said. The development follows Pakistan’s decision to return $3.5 billion in debt to the UAE before the end of this month.

According to a senior Pakistani official, Abu Dhabi had sought the immediate return of the amount. These funds were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments.

Earlier, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said that “everything is in place” to make repayments to the UAE and over Eurobonds, stressing the need for framing policies keeping in view the volatile regional situation. 

Talking informally to media men in Islamabad on Tuesday, Aurangzeb maintained that Pakistan has secured the UAE and Eurobond repayments. The government has plans to float Panda Bonds worth one billion dollars and is on course to meet the International Monetary Fund targets despite economic impediments, he added.

The minister vowed that foreign exchange reserves will be kept stable and maintained in line with the IMF targets. All pledges regarding Pakistan’s timely external payment obligations will be fulfilled, and preparations are underway for commercial financing and bond issuance.

Talks are currently ongoing with a consortium of banks to secure commercial financing, reflecting efforts to diversify funding sources, he said.

Aurangzeb further revealed that preparations for issuing Panda Bonds will resume by April-end, with the government planning to raise a total of $1 billion through these bonds. He expressed confidence that financing targets set for the current fiscal year will be achieved as per commitments.

The minister said since this is Pakistan’s first-ever Panda Bond issuance, it is taking time, while the impact of regional tensions on the national economy is also being assessed.

He added that economic policies formulated in coordination with the IMF have put the economy on the right track, and important economic decisions along with budget preparations will be made in the days to come.

The minister expressed confidence that all financing targets set for the current fiscal year will be achieved as committed. He reiterated that the government remains focused on maintaining fiscal discipline while securing necessary funding.

Aurangzeb acknowledged that the government is closely assessing the economic impact of rising regional tensions. He stressed the need to formulate policies keeping in view the evolving situation to safeguard economic stability.

Reporter Waqas Azeem