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Pakistan’s central bank announced on Saturday the successful repayment of $1 billion in Eurobonds, marking a scheduled payment ahead of the country’s pursuit of a long-term bailout from the International Monetary Fund (IMF).
The Eurobond, initially launched in 2014, reached maturity this month and was repaid on Friday, as per the central bank’s statement.
“The payment was made to the agent bank for onward distribution to the bond holders,” the central bank stated.
Pakistan has been grappling with a balance of payments crisis, surging inflation rates, and significant currency devaluation since the implementation of an IMF standby arrangement that prevented a sovereign default.
Finance Minister Muhammad Aurangzeb is scheduled to depart on Sunday for Washington to participate in the IMF-World Bank spring meeting, where he will commence negotiations for Pakistan’s 24th long-term IMF bailout.
Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF program on Friday, as per a government statement.
The $3 billion IMF standby arrangement secured by Islamabad last summer expired on Thursday, with the final tranche of $1.1 billion expected to be released after the IMF board convenes later this month.
In recent weeks, discussions between the two parties have revolved around negotiating a longer-term bailout to sustain essential policy reforms aimed at curbing deficits, bolstering reserves, and managing escalating debt servicing obligations.
IMF Chief Kristalina Georgieva mentioned on Thursday that Pakistan is in talks for a potential follow-up program with the IMF.
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