Eurobond proceeds received; Pakistan's foreign exchange reserves increase by over $3 billion

Following the receipt of $3 billion in Eurobond proceeds, Pakistan has recorded a significant increase in its foreign exchange reserves over the course of a week, pushing total reserves beyond the $26.79 billion mark.

According to a spokesperson for the State Bank of Pakistan, the central bank's foreign exchange reserves rose by $3.06 billion during the week. This increase brought the State Bank's reserves to $21.389 billion.

Meanwhile, reserves held by commercial banks were recorded at $5.402 billion. Consequently, the combined reserves of the State Bank and commercial banks have exceeded $26.79 billion.

Increase in Reserves Driven by Eurobond Proceeds

The central bank stated that the primary reason for the recent rise in foreign exchange reserves is the receipt of the Eurobond proceeds. Pakistan had issued Eurobonds worth $3 billion—a move Finance Minister Muhammad Aurangzeb described as the largest bond transaction in the country's history.

According to the Finance Minister, the Eurobond issuance reflects the confidence global rating agencies have in Pakistan. He noted that Pakistan's rating has improved three times since April 2025.

Interest from Global Investors

Muhammad Aurangzeb revealed that investors from Asia, the Middle East, Europe, and the United States showed interest in the Eurobonds. He stated that this demonstrates a restoration of global investor confidence in the Pakistani economy.

The Finance Minister remarked that the confidence of global investors is not limited to Pakistan's current economic situation but also extends to the country's future. He added that favorable pricing was secured for the 5.5-year and 10-year Eurobonds. According to them, the issuance of the $3 billion Eurobond was not a temporary or sudden decision; rather, it reflects economic reforms and the confidence of global investors.