The State Bank of Pakistan (SBP) has successfully repaid $1.43 billion Eurobond maturing on April 8, 2026.
“SBP has successfully executed repayment of $1.43 billion of Pakistan’s International Bond on 07 April 2026, which includes principal of $1.3 billion, and the remaining amount is interest,” the central bank said on Wednesday.
Payment was made to the agent bank for onward distribution to bondholders on the maturity date of 08 April 2026, it added.
Pakistan would return a $3.5 billion loan to the United Arab Emirates this month, raising pressure on reserves and risking breaches of the International Monetary Fund (IMF) programme, Reuters, citing two government officials, reported on Tuesday.
According to officials, $450 million would be paid during the current week, while the remaining $3 billion will be cleared in two tranches—$2 billion on April 17 and $1 billion on April 23.
These loans, some dating back to the late 1990s and later rollovers, carried an interest rate of around 6.5%.
Pakistan’s foreign ministry said on Saturday, without giving details, that the central bank would begin repayments, and rejected speculation that the move was driven by geopolitical differences over the Middle East crisis.
Pakistan is a staunch ally of Saudi Arabia, while Abu Dhabi and Riyadh’s relationship has deteriorated in recent months due to the conflict in Yemen and lost oil revenue from the closure of the Strait of Hormuz.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) stood at $16.38 billion during the week ended March 27. Net foreign reserves held by commercial banks were recorded at $5.41 billion, bringing the country’s total reserves to $21.79 billion.
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