On Friday, sources revealed that Pakistan’s bond in the international market has achieved a three-year stable level, reflecting growing confidence in the country’s Eurobond—a positive sign for the national economy.

Sources report that Pakistan has eliminated all default risks in the global bond market, as its bonds continue to show stability in the international market.

The risk premium on Pakistani bonds has dropped from 61.4% to 7.79%, according to details. The risk on repaying the $1.2 billion Eurobond due in 2026 has fallen to 8.5%, while the $1.5 billion bond maturing in 2027 now carries a risk of just 9.1%.

The repayment risk for the $1 billion bond due in 2029 has dropped from 28.8% to 9.4%. As concerns over Pakistan’s foreign exchange reserves ease, the country is now positioned to re-enter the international bond market with greater confidence.

In January, Finance Minister Muhammad Aurangzeb announced that Pakistan would launch a Panda Bond by June this year to strengthen its presence in China’s capital markets. In an interview with an international news channel, he stated that Pakistan aims to raise approximately $200 million from Chinese investors through the bond issuance.

The Minister stated that this move is part of a broader strategy to shift Pakistan’s economy toward export-driven growth, focusing on the sustainable balance of payments. He also emphasized the crucial role of the second phase of the China-Pakistan Economic Corridor.

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