General Economic Updates

[PK781]

private doctor clinics charge cash, they should be brought up in the net too as theyre minting cash daily. Let them pay their fair share to the country they love to loot the people from.

 

[Mobius]

Todays Economic Update from ground zero (grass roots)

 

[hydrabadi_arab]

Largest single domestic debt repayment so far: Govt retires Rs1.2trn to SBP ahead of schedule​

• The latest repayment takes the cumulative domestic debt retired before maturity to more than Rs5.92 trillion

ISLAMABAD: The government has retired Rs1.2 trillion in domestic debt owed to the State Bank of Pakistan (SBP) ahead of its scheduled maturity, marking the largest single early repayment tranche undertaken so far, according to Khurram Schehzad, Adviser to the Finance Minister.

Schehzad said the latest repayment takes the cumulative domestic debt retired before maturity to more than Rs5.92 trillion.

He said the latest early repayment surpassed the previous record of Rs1.133 trillion made in August 2025, underscoring the government’s increasing focus on proactive public debt management.


According to details shared by the adviser, Pakistan has retired domestic debt ahead of maturity in a series of repayments since October 2024.

These include Rs826 billion in October 2024, Rs200 billion in November 2024, Rs273 billion in March 2025, Rs500 billion in June 2025, and Rs1.133 trillion in August 2025.

Further early repayments included Rs122 billion in November 2025, Rs494 billion in December 2025, Rs300 billion in January 2026, Rs595 billion in April 2026, Rs279 billion in May 2026 and Rs1.2 trillion in August 2026.

Schehzad said the pace of early debt retirement had also accelerated significantly, with Rs1.8 trillion retired ahead of maturity during FY2025, followed by Rs2.9 trillion in FY2026—an increase of around 62 percent.

Another Rs1.2 trillion has already been retired ahead of maturity in FY2027, he added.

He said the development reflected a fundamental shift towards active sovereign liability management, whereby improved fiscal space was being used to retire obligations before maturity.

According to Schehzad, the strategy would help reduce refinancing and rollover risks, lower future debt-servicing pressures and strengthen Pakistan’s overall public debt profile. He said Pakistan was increasingly moving beyond simply managing debt maturities towards actively strengthening its sovereign balance sheet.

Copyright Business Recorder, 2026

 

[hydrabadi_arab]

 

[ghazi52]

 

[hydrabadi_arab]

 

[Goenitz]

Capacity payments. A gift from PMLN and PPP to themselves (leaders, their relatives and friends own IPPs). 1250 Billion Rs is similar to 45 billion $

 

[Mobius]

 

[Mobius]

 

[Goenitz]

Development in the interest of people, Captain Imaan

 

[hydrabadi_arab]

Pakistan raises $3bn through Eurobond sale​

• It raised $1.75 billion through a 5.5-year bond

Pakistan has raised $3 billion through a dual-tranche Eurobond sale that drew nearly $6 billion in orders, its finance ministry said on Thursday.

It raised $1.75 billion through a 5.5-year bond at a coupon rate of 7.5% and $1.25 billion through a 10-year bond at 7.9%, the ministry said.

“Pakistan has successfully issued US$3 billion through a landmark dual-tranche Eurobond transaction, the largest-ever international bond issuance by Pakistan in a single transaction,” said the ministry.

“The transaction attracted nearly $6 billion in orders — almost twice the amount issued — from a broad and diversified base of institutional investors across global markets and continents,” it added.

The finance ministry said that the successful transaction marks a major milestone in Pakistan’s renewed and increasingly diversified access to international capital markets, demonstrating strong investor confidence and Pakistan’s ability to access global funding markets at significant scale.

It added that the transaction also represents an important milestone in Pakistan’s broader road to market strategy.

“Following the successful inaugural Panda Bond and improvements in Pakistan’s sovereign credit profile, this is the first issuance under Pakistan’s renewed strategic Global Medium-Term Note (GMTN) Programme — creating a platform for diversified access to international capital markets.

“The objective is not simply to raise additional debt. Pakistan is pursuing a broader strategy of active sovereign liability management — diversifying financing sources, extending maturities, reducing refinancing and rollover risks, and creating opportunities to replace shorter-term and more expensive obligations with longer-duration, competitively priced financing, where economically beneficial,” the ministry said

The ministry lauded the role of the Debt Management Office for successfully delivering this transaction.

“The Ministry of Finance, Government of Pakistan, highly appreciates the excellent work of the Joint Bookrunners — Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered — in successfully managing and executing this landmark transaction.”

It said that over the past three years, Pakistan’s improving economic trajectory has increasingly been recognised through successive sovereign credit-rating upgrades and renewed access to international capital markets.

“Now global investors have reinforced that assessment with billions of dollars of actual capital,” it said.

 

[hydrabadi_arab]

Pakistan has raised $3 billion through a dual-tranche Eurobond sale that drew nearly $6 billion in orders, its finance ministry said on Thursday.

It raised $1.75 billion through a 5.5-year bond at a coupon rate of 7.5% and $1.25 billion through a 10-year bond at 7.9%, the ministry said.

Pakistan replacing annual rollovers from China/Saudis with long term debt. Era of IMF about to be over.

 

[c14-Isotope]

Pakistan replacing annual rollovers from China/Saudis with long term debt. Era of IMF about to be over.

How does replacing loans @6.5% with new loans @7.5% help in that regard?
Paying more in interest payments means bye bye to IMF?

 

[Owaiz]

Pakistan replacing annual rollovers from China/Saudis with long term debt. Era of IMF about to be over.

According to Bloomberg, these were priced at yields of 7.75% for the 5.5 year bond and 8.25% for the 10 year. That is very expensive compared to what China, Saudis and IMF are charging.

 

[Owaiz]

How does replacing loans @6.5% with new loans @7.5% help in that regard?
Paying more in interest payments means bye bye to IMF?

There is a difference between the coupon and yield of a bond. These bonds were priced at a discount, so the yield is higher.