Islamabad: Pakistan has issued a three-billion-dollar dual tranche Eurobond. The positive development was shared by Finance Minister Muhammad Aurangzeb while speaking at the High-Level International Dialogue on Taxation for Fiscal Sustainability in Pakistan organized by Asian Development Bank (ADB).

According to Radio Pakistan, Muhammad Aurangzeb stated that this dual tranche Eurobond is the single largest transaction in the history of Pakistan, highlighting it as a reflection of the external validation the country has received from rating agencies. Since April last year, Pakistan has secured three credit-rating upgrades.

Aurangzeb further emphasized the diversified nature of the investors, which span across Asia, the Middle East, Europe, and the United States. He noted that this broad participation demonstrates renewed confidence from the international community in Pakistan's economy.

Additionally, the Finance Minister mentioned that Pakistan is exploring options such as Sukuks, rupee-denominated dollar-settled bonds, and Panda Bonds to repay short-term expensive debt and reduce rollover risks. He underscored a level of sustainability in fiscal discipline, noting that the fiscal deficit is at a 22-year low with three consecutive years of primary surpluses.

Aurangzeb reaffirmed the government's commitment to structural reforms to prevent a return to past boom-and-bust cycles. He reported an increase in the tax-to-GDP ratio from 8.1 percent to 10.3 percent, while acknowledging the need for further improvements.

At the event, Minister of State for Finance Bilal Azhar Kayani emphasized that domestic resource mobilization remains a critical priority for Pakistan, highlighting efforts to enhance the tax-to-GDP ratio.

Chairman FBR Rashid Mahmood Langrial discussed significant reforms undertaken in the Federal Board of Revenue (FBR) over the past two and a half years. He mentioned the involvement of private sector expertise and third-party auditors, as well as the near-completion of the design for IRIS 3.0.