Pakistan’s dollar bonds continue to gain momentum as recent credit-rating upgrades and the government’s preparations to return to international debt markets strengthen investor confidence. According to Bloomberg, Pakistan plans to issue yuan-denominated bonds later this year, followed by a return to the Eurobond market in 2026, signaling renewed engagement with global investors.
Analysts note that the outlook for the next six to 12 months remains strong, with expectations of further rating upgrades and improved market access driving potential capital appreciation. Salman Niaz of Goldman Sachs highlighted that Pakistan’s dollar bonds have already delivered a 24.5 percent return this year, making them the top performers in Asia. The improved ratings from S&P Global and Fitch reflect the country’s progress in fiscal management and structural reforms, supported by IMF-backed programs, strict fiscal discipline and additional revenue generated through tax measures.
Despite lingering concerns related to geopolitical tensions and increasing energy costs—particularly as oil imports make up about 30 percent of the country’s total import bill—investors remain largely optimistic. Continued reform implementation and smoother access to global markets are viewed as key factors that could sustain the upward trajectory of Pakistan’s sovereign debt performance.