Pakistan has raised $3 billion through a dual-tranche Eurobond, marking the country’s largest-ever international bond issuance in a single transaction, the Ministry of Finance said Thursday.

The transaction attracted nearly $6 billion in orders, almost twice the amount Pakistan issued. According to the ministry, demand came from a broad and geographically diversified base of institutional investors.

Pakistan raised $1.75 billion through a 5.5-year Eurobond carrying a 7.50% coupon. Additionally, it secured $1.25 billion through a 10-year Eurobond with a 7.90% coupon.

The Finance Ministry described the transaction as a major milestone in Pakistan’s renewed access to international capital markets. Furthermore, officials said the strong order book demonstrated growing confidence in the country’s economic outlook.

Strong Demand Supports Pakistan’s Market Return

The nearly $6 billion order book provided a strong signal of investor interest in Pakistan’s sovereign debt.

Moreover, demand remained strong across both maturities. The ministry said competitive pricing and significant interest in the 10-year bond showed Pakistan’s ability to secure longer-term financing.

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The issuance is the first transaction under Pakistan’s renewed Global Medium-Term Note (GMTN) Programme. It follows the country’s inaugural Panda Bond and recent improvements in its sovereign credit profile.

Officials stressed that the objective extends beyond raising fresh funds. Instead, Pakistan is pursuing a broader debt-management strategy focused on diversifying funding sources and extending maturities.

As a result, the government aims to reduce refinancing and rollover risks. It also wants to replace shorter-term and more expensive obligations with longer-duration financing when economically beneficial.

Government Highlights Economic Progress

Finance Minister Muhammad Aurangzeb said the $3 billion transaction reflected international recognition of Pakistan’s economic progress.

Speaking at a high-level international dialogue on taxation in Islamabad, Aurangzeb said rating agencies had upgraded Pakistan’s credit profile three times since April last year.

He also highlighted the diversity of investors participating in the bond sale. Investors came from Asia, the Middle East, Europe and the United States.

According to the minister, such broad participation demonstrated renewed international confidence in Pakistan’s economy.

Meanwhile, the government plans to explore additional financing instruments. These include Sukuk, rupee-denominated dollar-settled bonds and Panda Bonds.

The instruments could help Pakistan refinance expensive short-term debt while reducing rollover risks.

Fiscal Discipline Remains Key Priority

Aurangzeb also pointed to improvements in Pakistan’s fiscal position.

The finance minister said the fiscal deficit had fallen to a 22-year low. Furthermore, Pakistan recorded primary surpluses for three consecutive years.

He said the government remained committed to structural reforms to prevent a return to the boom-and-bust economic cycles of the past.

Tax collection has also improved, according to the minister. The tax-to-GDP ratio increased from 8.1% to 10.3%, although Aurangzeb acknowledged that further progress was needed.

The government has also focused on improving debt management. The Finance Ministry said Pakistan had already pursued substantial early retirement of domestic debt before maturity.

Extending similar discipline to external financing remains part of the government’s broader strategy.

FBR Advances Tax Reform Programme

Earlier, Federal Board of Revenue Chairman Rashid Mahmood Langrial highlighted reforms undertaken by the tax authority over the past two and a half years.

Langrial said the FBR had brought in private-sector expertise and introduced third-party auditors as part of its reform programme.

Additionally, the tax authority is preparing to launch IRIS 3.0, with the system’s design phase reportedly nearing completion.

The government says continued fiscal reforms, stronger tax collection, export growth and higher productivity will remain essential to sustaining economic stability.

Pakistan Enters Next Phase of Capital-Market Strategy

The record Eurobond marks a significant step in Pakistan’s return to international capital markets.

Nearly $6 billion in investor orders for a $3 billion issuance indicates strong demand for Pakistani sovereign debt. Consequently, the transaction could strengthen the country’s ability to diversify its external financing sources.

However, officials acknowledge that the economic reform process is not complete. Fiscal discipline, structural reforms, investment, exports and productivity improvements will remain critical.

For now, the successful bond sale gives Pakistan additional funding while offering a market-based signal of improved investor confidence.

The government intends to build on that momentum by extending maturities, diversifying financing and reducing refinancing risks.