State Bank of Pakistan Governor Jameel Ahmad on Friday said the country will repay a $1 billion international bond on December 2, three days before its due date.
There has been growing uncertainty about Pakistan’s ability to meet external financing obligations with the country in the midst of an economic crisis and recovering from devastating floods that killed over 1,700 people.
The bond repayment, which matures on Dec 5, totals $1.08bn, Ahmad told a briefing, according to two analysts who were present.
Ahmad added that funding was lined up from multilateral and bilateral sources to ensure the repayment would not affect foreign exchange reserves.
An immediate inflow of $500 million was expected on Tuesday from the Asian Infrastructure Investment Bank, he said.
Ahmad said reserve levels will depend on the continued realisation of expected inflows and rollover of loans from friendly countries, but added he was confident the reserve figure would be “much higher” by the end of the financial year in June 2023.
