ISLAMABAD – State Bank of Pakistan has repaid $1 billion in Eurobonds as Islamabad is looking for long-term bailout funds from International Monetary Fund.
In a statement, the central bank said Eurobonds, which were first issued in 2014, were paid back on April 12. SBP made the payment to the agent bank for further distribution to the bondholders.
The country of 240 million is taking extreme steps including a balance of payments crisis, record inflation, and massive currency devaluation as it passed a sovereign default.
Pakistan made the payment ahead of Finance Minister Aurangzeb’s visit to Washington to participate in the IMF-World Bank spring meeting, where negotiations will begin for Pakistan’s 24th long-term IMF bailout.
In March, SBP’s reserves saw improvement, growing by $19 million weekly to reach $8.04 billion. Despite the repayment leading to a decline in reserves to about $7 billion, the incumbent government is looking for funds from the IMF and other lenders.
Last month, Pakistan finalized staff-level agreement for the $3 billion Stand-By Arrangement (SBA) with the US-based lender. IMF Executive Board is expected to approve this agreement in late April, releasing approximately $1.1 billion as the final tranche of the SBA.
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