ISLAMABAD: Pakistan’s dollar bonds have emerged as the best-performing in Asia, marking a major shift in sentiment after two years of default fears, according to Bloomberg.
The government is now preparing to return to global capital markets, with plans to issue Panda bonds this year and Eurobonds in 2026, as officials move to secure broader access amid stabilising economic indicators.
Pakistan’s dollar-denominated bonds have outperformed every Asian market, delivering a 24.5% return, Bloomberg reported.
The strong performance comes after prolonged default concerns, signalling a significant rebound in investor interest.
The government is also preparing to issue additional dollar bonds next year, reflecting renewed confidence in Pakistan’s ability to tap global markets
After nearly two years of elevated sovereign risk, Pakistan is now gearing up to re-enter international debt markets.
A Bloomberg report said Islamabad will issue Panda bonds later this year, followed by Eurobonds in 2026, as financing needs grow and global sentiment improves.
Officials believe that granting market access will help reduce future refinancing risks, a concern that has hovered over the economy since 2022.
Rating upgrades strengthen momentum
Credit rating agencies S&P and Fitch have both upgraded Pakistan’s sovereign rating, Bloomberg noted.
The upgrades reflect better fiscal management, improved liquidity buffers, and the progress made under the IMF programme.
Bloomberg reported that further rating upgrades could materialise within the next 6 to 12 months, provided reforms remain on track.
The possibility of additional rating improvements is helping sustain momentum in Pakistan’s bond market performance.
Analysts say confidence has grown due to Pakistan’s implementation of the IMF programme, which has brought greater policy clarity and tighter fiscal discipline.
Bloomberg’s report highlights that investors expect bond prices to strengthen further if reforms continue without interruption.
