Pakistan’s Eurobond Yields Down Across All Maturities After S&P Upgrade

The yields on all the Pakistani Eurobonds declined globally on 25 July 2025 after S&P Global upgraded Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-’, which boosted overseas investors’ confidence in the South Asian economy. AKD Securities said in a brief market review that Pakistan’s economy grew 2.7 percent in FY25 on the back of industry and services sector growth. This was counterbalanced by underwhelming agriculture sector growth, a critical sector accounting for 24 percent of economic output. S&P Global projects GDP growth to improve in the current fiscal year to 3.6 percent, as reform measures and a decline in prices lift economic activity. In its statement, S&P noted, “The stable outlook reflects our expectation that ongoing economic recovery and the government’s efforts to boost revenue will help stabilize fiscal and debt indicators.” The agency also expressed confidence that continued access to official financing will enable Pakistan to meet its external debt obligations and successfully roll over its commercial credit lines over the next year.