Pakistan, October 3 – Finance Minister Muhammad Aurangzeb stated on Thursday that Pakistan is "well-prepared" to settle a $1.3 billion Eurobond due in April of next year. This statement follows the federal minister's emphasis on enhanced macroeconomic stability and a more consistent financial outlook.
"We settled the $500 million Eurobond on September 30, which was a routine occurrence. We are in a strong position to settle the $1.3 billion Eurobond, set to mature in April 2026," stated Aurangzeb during his speech at the Pakistan Business Summit, hosted by the Nutshell Group, in Peshawar.
The conference, held under the sponsorship of the Governor of Khyber Pakhtunkhwa, focused on the theme "Shaping What's Next" and gathered decision-makers, business figures, and corporate managers to discuss Pakistan's economy, innovation, and international competitiveness. The single-day event was jointly organized by Nutshell Group and Al Baraka Bank (Pakistan) Limited, with the Overseas Investors Chamber of Commerce and Industry (OICCI) serving as a Strategic Partner.
Pakistan has successfully settled its $500 million Eurobond, which reached maturity on September 30, 2025, according to an announcement from the Ministry of Finance on Wednesday. The bond was issued in 2015 to international investors and had a 10-year term, maturing on September 30, 2025.
The finance minister also mentioned that funds transferred into the formal economy through remittances have risen. "In the previous year, we received $38 billion in remittances. This year, we anticipate between $41 and $43 billion."
Aurangzeb believed that the current policy rate, still at 11%, is likely to be reduced during the current fiscal year. "While the policy rate is primarily the responsibility of the central bank, I believe there is sufficient room for us to continue lowering the rate throughout this fiscal year," he stated.
Aurangzeb stated that to advance the private sector, "it must be simultaneously supported by a structural reform plan."
He mentioned that the government must restore the confidence and reliability of tax authorities in Pakistan. "We are advancing in expanding and broadening the tax base," he stated.
The minister of finance stated that the budget for the upcoming financial year will be presented by the tax policy department within the Finance Division.
Regarding the privatisation process, Aurangzeb mentioned that 24 government-owned companies have been transferred to the Privatisation Commission.
The finance minister stated that Pakistan's development budget for the current fiscal year amounts to Rs4.3 trillion (covering both federal and provincial budgets), equivalent to approximately $12-13 billion. "If we prioritize the allocation of these funds appropriately and ensure effective coordination between the federation and the provinces, we have sufficient resources to spend," he mentioned.
Aurangzeb stated that rather than seeking help from the United Nations, the government could redirect these funds to provide aid and relief following the recent floods that caused extensive damage to agricultural areas in Pakistan.
Regarding FDI, the finance minister stated that the recent trips to Beijing, Riyadh, New York, and Washington have produced concrete outcomes. In China, we entered into 24 joint ventures—more than just memorandums of understanding (MoUs).
"These are all crucial markets and significant bilateral partners for us, who have supported us through the Fund program. However, more importantly, looking ahead, it is the flow of trade and investment that we anticipate," he stated.
When discussing trade with the United States, Aurangzeb mentioned that both nations have achieved significant agreements in areas such as minerals, information technology, artificial intelligence, agriculture, and pharmaceuticals.
I believe we have performed adequately in terms of the tariff when compared to others.
The federal minister emphasized that the government is also getting ready to return to international capital markets. "By the end of the year, we anticipate issuing our first Panda bond in China - accessing the world's second-largest financial market," he mentioned.
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