The payment was made on time and in accordance with the agreed schedule, it added.

In a statement posted on social media platform X, Adviser to the Finance Minister Khurram Shehzad said: “Pakistan has successfully fulfilled its obligations by repaying the $500 million international bond (Eurobond) that was due on September 30, 2025.”

The bond was originally issued in 2015 to international investors with a 10-year maturity.

Commitment to financial discipline

Khurram Shehzad emphasised that timely debt repayment is part of Pakistan’s routine financial management and reflects the country’s commitment to fiscal discipline.

He termed the development “encouraging,” noting that the payment comes at a time when Pakistan’s foreign exchange reserves and liquidity have improved, sovereign credit ratings have seen positive movement, and investor confidence is on the rise.

According to Shehzad, the Debt-to-GDP ratio has decreased from 77% in FY2020 to 70% in FY2025.

The share of external debt in total public debt has dropped from 38% to 32%, reducing Pakistan’s vulnerability to foreign exchange shocks.

The growth rate of debt in FY2025 has been significantly lower compared to previous years.

He added that improved macroeconomic fundamentals and a reduction in the cost of borrowing will help Pakistan access global markets on more competitive terms, contributing to a more sustainable debt structure going forward.

Foreign reserves stabilising

According to recent data from the State Bank of Pakistan, the country’s foreign exchange reserves have shown signs of stability.

As of September 19, 2025, central bank reserves rose by $22 million, reaching $14.38 billion.

Ongoing talks with IMF

The government is currently engaged in discussions with the International Monetary Fund (IMF) for the second review of the $7 billion Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).

This repayment and improved economic indicators are likely to strengthen Pakistan’s position in ongoing negotiations with the IMF and boost international confidence in the country’s economic outlook.