KARACHI: The central bank has successfully repaid a $1.43 billion Eurobond that was maturing on April 8, it said on Wednesday.
“The SBP has successfully executed the repayment of $1.43 billion Pakistan’s International Bond on April 7, 2026, which includes principal of $1.3 billion, and the remaining amount is interest. The payment was made to the agent bank for onward distribution to bondholders on the maturity date of April 8, 2026,” the State Bank of Pakistan said.
Khurram Schehzad, adviser to the federal minister of finance, said on Tuesday that debt servicing continues to occur without any major issues, reflecting consistency, discipline and strengthened capacity. According to Schehzad, this performance is supported by stable external buffers, improved liquidity, sustained macroeconomic stability and resilience, strengthened investor confidence, and a more sustainable and disciplined debt trajectory.
Pakistan is set to repay approximately $3.5 billion in loans to the United Arab Emirates (UAE), having made arrangements to manage this outflow. However, details regarding the inflows are not yet available.
According to reports, the government has arranged funds from two friendly countries to tackle this payment requirement. The government had requested Saudi Arabia to convert $5 billion into long-term deposits and to increase its oil facility of deferred payment to $5 billion from $1.2 billion. Thus, this could be one option to manage the outflow of $4.8 billion.
In addition to borrowing from allied countries, the government may consider arrangements through swaps, along with interventions by the SBP in the FX market to purchase dollars, analysts say.The SBP’s reserves stood at $16.3 billion as of March 27.
