Pakistan raised $3 billion from a two-part junk bond sale, taking advantage of investor interest after securing credit rating upgrades in the past couple of months.

The nation sold $1.75 billion of five-year debt at a yield of 7.75%, according to people familiar with the matter, who declined to be identified as the information is private. Pakistan also sold $1.25 billion of 10-year notes at a yield of 8.25%, the people said.

The bond issuance reflects growing investor confidence in Pakistan's economic reforms and fiscal consolidation efforts, which have led to improved credit ratings from major agencies over recent months.

The successful sale demonstrates Pakistan's ability to tap international capital markets despite ongoing economic challenges, with the yields reflecting both the country's risk profile and the current global appetite for emerging market debt.