Finance Minister Assures $1.3 Billion Eurobond Payment After $500 Million Settlement

Senator Muhammad Aurangzeb, the Finance Minister and keynote speaker at the Pakistan Business Summit in Peshawar, reaffirmed the government’s commitment to meet its external debt obligations. “We repaid $500 million Eurobond on September 30 without disrupting the market,” he said during the summit. “We are confident we can honor the $1.3 billion Eurobond due in April 2026,” he added. Addressing business leaders and policymakers under the theme “Shaping What’s Next,” Aurangzeb praised recent economic improvements. These include lower financing costs, stronger foreign exchange reserves covering nearly three months of imports, and stable exchange rates. He viewed these factors as key to rebuilding investor confidence. He also mentioned that remittances reached USD 38 billion last year and are expected to grow to USD 41–43 billion this fiscal year. Regarding reforms, Aurangzeb emphasized the need for tax restructuring by separating policy from administration, privatizing state-owned enterprises, reforming energy pricing, and increasing exports through tariff reductions and greater foreign investment. He noted that Pakistan plans to issue its first Panda Bond before the end of the year to tap into the larger Chinese capital markets. Aurangzeb urged to widely allocate the Rs. 4.3 trillion national development budget across infrastructure, health, and education, along with better cooperation between federal and provincial governments. He highlighted the big challenges on the horizon, like climate change, population growth, child stunting, and learning poverty, as negatively impacting productivity. Reform must be inclusive, he said, to turn macroeconomic gains into real benefits for people.