Pakistan’s central bank announced the successful repayment of a $1 billion Eurobond on Saturday, marking a crucial step in the country’s efforts to secure a long-term bailout from the International Monetary Fund (IMF).
The Eurobond, issued in 2014, reached maturity this month and was fully repaid on Friday. The central bank clarified that the payment was made to the agent bank for distribution to bondholders, as per their official statement.
Facing a severe balance of payments crisis, soaring inflation, and currency devaluation, Pakistan is seeking IMF assistance to address its financial challenges. Finance Minister Muhammad Aurangzeb is set to depart for Washington on Sunday to participate in the IMF-World Bank spring meeting and commence negotiations for Pakistan’s 24th long-term IMF bailout.
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Aurangzeb has already briefed Prime Minister Shehbaz Sharif about the new IMF program, as confirmed by an official government statement. The previous IMF standby arrangement, amounting to $3 billion, expired recently, with the final tranche of $1.1 billion expected after the IMF’s board convenes later this month.
