The State Bank of Pakistan (SBP) said on Saturday the country has successfully executed the repayment of $1 billion Pakistan’s International Bond on April 12, 2024.
The payment, which included principal plus interest, was made to the agent bank for onward distribution to the bond holders, the SBP added.
“After repayment of 2024 bond today, Pakistan's total outstanding international bonds/Sukuks are $6.8 billion (6.8% of public external debt) with the next maturity amounting to $500 million in September 2025,” shared Shahid Ali Habib, CEO Arif Habib Limited (AHL), in a post on Saturday.
Pakistan’s foreign exchange reserves position has somewhat stabilised in recent weeks, with reserves held by the SBP having increased by $19 million on a weekly basis, clocking in at $8.04 billion as of March 29, as per the latest data.
Total liquid foreign reserves held by the country stood at $13.38 billion. Net foreign reserves held by commercial banks stood at $5.34 billion.
With this payment, the SBP-held reserves will fall to around $7 billion, but Pakistan then expects an inflow from the International Monetary Fund (IMF).
Last month, Pakistani authorities reached a staff-level agreement on the second and final review of the $3 billion Stand-By Arrangement (SBA).
The IMF Executive Board is expected to meet “in late April” where approval would pave way for Pakistan to receive funds of around $1.1 billion (SDR 828 million) as its final tranche of the SBA.
Earlier this week, IMF chief Kristalina Georgieva told an event at the Atlantic Council think tank that Pakistan was successfully completing its existing programme with the IMF and its economy was performing somewhat better, with reserves now being built up.
“There is a commitment to continue on this path, and the country is turning to the fund for potentially having a follow-up programme,” Georgieva said, flagging issues that the struggling South Asian nation still needed to address.
“I do believe that there are very important issues to be solved in Pakistan: the tax base, how the richer part of society contributes to the economy, the way public spending is being directed and of course, creating … a more transparent environment.”