Pakistan, Sept. 6 -- Pakistan has raised $3 billion from international investors in its largest single capital-market transaction, placing $1.75 billion of 5.5-year paper and another $1.25 billion for 10 years against orders approaching $6 billion. Coming barely five months after Islamabad returned to the Eurobond market, the latest sale suggests something important has changed: Pakistan is no longer merely testing whether foreign investors will buy its debt. With a hint of cautious optimism, it is once again able to raise meaningful sums across the maturity curve.

The government is entitled to some satisfaction. A combination of IMF-backed stabilisation, stronger reserves, successive rating upgrades and considerably improved perceptions...