Pakistan repaid $1.3bn Eurobond on schedule, says Khurram Schehzad

Pakistan on Tuesday repaid a $1.3 billion Eurobond maturing on April 8, 2026, in full and on schedule, as part of its routine external debt management, said Advisor to Finance Minister Khurram Schehzad.

The country also met $126.125 million in coupon obligations on other Eurobond issuances, he wrote in a post on X.

“This brings total payments today to over $1.426 billion,” he said. “Debt servicing continues to be executed as a non-event - reflecting consistency, discipline, and strengthened capacity.”

Schehzad said this performance was underpinned by “stable external buffers and improved liquidity, continued macroeconomic stablisation and resilience, strengthening investor confidence, and a more sustainable and disciplined debt trajectory”.

“The seamless execution of large external repayments underscores both capacity and consistency - reinforcing Pakistan’s credibility across global investors and financial institutions,” he wrote.

Pakistan would return a $3.5 billion loan to the United Arab Emirates this month, raising pressure on reserves and risking breaches of International Monetary Fund (IMF) programme targets with an additional $1.3 billion Eurobond repayment due by June, Reuters, citing two government officials, reported on Tuesday.

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.