Pakistan set to repay USD 1 billion against Eurobond

Pakistan PM Shehbaz Sharif

Pakistan is set to repay a foreign debt worth USD 1 billion against a 10-year Eurobond maturing in the middle of this month which will reduce the stock of the debt acquired through the selling of bonds in international markets to below USD 7 billion.

The State Bank of Pakistan (SBP) told The Express Tribune that it was ready to repay the bond anytime and was waiting to receive instructions to do so from the finance ministry. The move will reduce the stock of the debt acquired through selling Eurobonds and Sukuks (bond-like instruments used in Islamic finance) in international markets to below USD 7 billion.

This has enhanced the country's capacity to repay all the upcoming maturing foreign debt on time. Following the repayment of USD 1 billion in April, Pakistan's foreign exchange reserves will experience a decline. However, the anticipated International Monetary Fund (IMF) tranche of USD 1.1 billion, likely to be received by the end of April, is expected to restore the reserves back to over the USD 8 billion mark.

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