Pakistan Repays $1 Billion Eurobond Ahead of IMF Bailout Talks
Central Bank Repays Eurobond
Pakistan’s central bank announced on Saturday that it has successfully repaid a $1 billion Eurobond ahead of seeking a long-term bailout from the International Monetary Fund (IMF). The bond, issued in 2014, reached maturity this month and was repaid on Friday.
Struggles with Economic Crisis
The payment was made to the agent bank for distribution to bond holders, as Islamabad continues to grapple with a balance of payments crisis, record inflation, and currency devaluation. These challenges have intensified since the previous IMF standby arrangement prevented a sovereign default.
Finance Minister’s Trip to Washington
Finance Minister Muhammad Aurangzeb is set to depart for Washington on Sunday to participate in the IMF-World Bank spring meeting. He will commence negotiations for Pakistan’s 24th long-term IMF bailout during this crucial visit.
Discussions for a New IMF Programme
Following the expiration of the previous $3 billion IMF standby arrangement, discussions are underway for a new long-term bailout to facilitate necessary policy reforms, deficit reduction, reserve accumulation, and debt management. The final tranche of $1.1 billion is expected to be released after the IMF board convenes later this month.
Pakistan in Talks with IMF
Pakistan is actively engaged in negotiations with the IMF for a potential follow-up programme, as confirmed by IMF chief Kristalina Georgieva. The discussions aim to address key economic challenges and implement effective strategies for sustainable growth.
