Pakistan has launched the process for a benchmark US dollar-denominated dual-tranche Eurobond offering, seeking to return to international capital markets after an extended absence. The proposed transaction will feature long five-year and 10-year maturities, subject to market conditions. The issue size, pricing and final yields remain undisclosed. A successful offering could diversify Pakistan’s external financing sources and support future debt-servicing requirements.

Pakistan has retired Rs1.2 trillion in debt ahead of maturity, marking the country’s largest single early-repayment tranche to date. Following this repayment, Pakistan’s cumulative debt retired before maturity has approached Rs6 trillion. The development reflects the government’s ongoing efforts to improve debt management, reduce future repayment pressures and strengthen fiscal stability.

The State Bank of Pakistan earned Rs1.99 trillion in FY26 and transferred Rs1.932 trillion to the federal government, supporting non-tax revenue and limiting borrowing needs. SBP profit declined from Rs2.5 trillion in FY25, while the benchmark interest rate fell from a previous peak of 22% to 11.5%. Pakistan’s domestic debt increased by 9%, or Rs4.969 trillion, reaching Rs59.94 trillion by the end of FY26. Meanwhile, SBP foreign exchange reserves rose by $17 million to $17.098 billion, while commercial banks held $5.488 billion.