ISLAMABAD: Pakistan will have to pay off two large Eurobond obligations, totaling $1.5 billion, when they mature this year, which is expected to result in a large increase in external debt repayments in the country’s next budget for the fiscal year 2025–2026.
Islamabad is aggressively looking into ways to reenter the global capital market in light of these growing debt servicing obligations.
In the upcoming fiscal year, the government plans to issue a number of foreign bonds, such as Eurobonds, Sukuk, and even Panda bonds.
However, the current market appetite and markup rates in the US and other international financial centers will have a significant impact on the success of these proposed bond issuances.
High interest rates or unfavorable market circumstances could make Pakistan’s borrowing plans difficult.
