Pakistan raises $3 billion in largest one-off international bond deal — Dawn
Pakistan has raised $3 billion in the country’s largest-ever one-off international bond issuance deal. Investors submitted bids totaling nearly $6 billion, Dawn reports.
The issuance consisted of two tranches: $1.75 billion in bonds with a 5.5-year maturity and a 7.5% coupon, as well as $1.25 billion in 10-year securities with a 7.9% coupon. The publication notes that demand was nearly twice the amount the country had planned to raise.
External debt and payments
As of the end of July 2026, Pakistan’s external debt stood at 24.1 trillion Pakistani rupees, or $138.85 billion, according to the State Bank of Pakistan. The federal government’s external debt was estimated at $87.03 billion, of which $77.2 billion accounted for long-term liabilities.
About 30% of the country’s external debt is owed to China, while liabilities to Chinese creditors are approaching $30 billion. This is nearly three times more than Pakistan’s debt to the International Monetary Fund.
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According to the Ministry of Economic Affairs, in FY26 the country received $27.2 billion in external loans and rollovers, including $2.2 billion from the IMF, $5 billion in rollovers from Saudi Arabia, and $4 billion from China. Topline Research estimates the actual cash outflow for external debt servicing in FY27 at approximately $11–12 billion.
Capital market
The State Bank of Pakistan reduced its forward liabilities from $5.8 billion to about $950 million by the end of June 2026. Finance Minister Muhammad Aurangzeb said at an investment forum in Islamabad that the government seeks to reduce its reliance on commercial banks to finance budgetary needs.
The government has also instructed financial advisers to develop a structure for rupee-denominated bonds settled in dollars and is exploring the digital tokenization of debt instruments. Dawn notes that raising funds through bonds may support liquidity and market confidence, but does not eliminate debt obligations.
