ISLAMABAD: Pakistan is set to repay a major foreign debt amounting to approximately $1.3 billion upon the maturity of an international Eurobond in April 2026, including both principal and markup, as Islamabad continues to struggle to meet the Net International Reserves (NIR) targets under its programme with the International Monetary Fund (IMF).
As the IMF review mission prepares to arrive in Pakistan later this month, officials said the delegation will stay in Karachi for a couple of days before moving to Islamabad around March 2, 2026, for key discussions under the $7 billion Extended Fund Facility (EFF). These talks are expected to focus on fiscal reforms, external financing and progress on structural benchmarks agreed under the program.
Officials indicated that the Ministry of Finance plans to launch Panda bonds shortly after the end of holidays in China in an effort to raise the first tranche of $250 million. According to sources, there are indications of strong investor interest, with expectations of oversubscription for the bond issuance.
The government, officials said, repaid a $700 million Chinese commercial loan ahead of schedule to demonstrate its repayment capacity, while Chinese banks have reportedly assured refinancing within the ongoing fiscal year. Pakistan is also engaged in negotiations with international commercial banks to secure an additional $500 million in fresh financing during the current fiscal cycle.
