Pakistan Issues Record $3 Billion Dual-Tranche Eurobond

ISLAMABAD: (Finance Reporter) – Pakistan has successfully issued a $3 billion dual-tranche Eurobond, described by Finance Minister Senator Muhammad Aurangzeb as the largest transaction of its kind in the country’s history.

Speaking at the High-Level International Dialogue on Taxation for Fiscal Sustainability in Pakistan, organised by the Asian Development Bank (ADB) in Islamabad, Aurangzeb said the transaction reflected growing international confidence in Pakistan’s economy.

The finance minister said Pakistan had received three credit-rating upgrades since April last year, describing the development as an important form of external validation from international rating agencies.

He noted that the Eurobond attracted investors from a diverse range of markets, including Asia, the Middle East, Europe and the United States. According to Aurangzeb, the broad investor participation demonstrates renewed confidence in Pakistan’s economic outlook.

Aurangzeb said the government is also exploring additional financing instruments, including Sukuk, rupee-denominated dollar-settled bonds and Panda Bonds. These instruments, he explained, are intended to help repay costly short-term debt and reduce refinancing and rollover risks.

The minister also pointed to improvements in Pakistan’s fiscal position, saying the country’s fiscal deficit had fallen to a 22-year low, while the government had recorded primary surpluses for three consecutive years.

Aurangzeb reaffirmed the government’s commitment to structural reforms, stressing the need to prevent Pakistan from returning to the boom-and-bust economic cycles witnessed in the past.

He said the country’s tax-to-GDP ratio had improved from 8.1% to 10.3%, while acknowledging that further progress is necessary to strengthen domestic revenue collection.

Earlier, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said the tax authority had introduced what he described as fundamental reforms over the past two and a half years.

Langrial said the FBR had opened the door to private-sector expertise and engaged third-party auditors as part of its reform efforts. He added that the design phase of IRIS 3.0, the next version of the FBR’s online tax system, was nearing completion.

Minister of State for Finance Bilal Azhar Kayani said improving domestic resource mobilisation remains a key national and fiscal priority. He also highlighted government measures aimed at increasing Pakistan’s tax-to-GDP ratio.