ISLAMABAD — Pakistan is preparing to repay approximately $1.3 billion in principal and interest on a maturing Eurobond in April 2026, ahead of upcoming negotiations with the International Monetary Fund (IMF) under the country’s $7 billion reform programme.
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Officials said the IMF review mission is scheduled to arrive later this month, spending several days in Karachi before moving to Islamabad around March 2 for detailed discussions under the $7 billion Extended Fund Facility (EFF). The talks are expected to focus on fiscal reforms, external financing, and the progress of structural benchmarks agreed under the program.
As part of its debt management strategy, Pakistan plans to issue Panda bonds in China after the end of local holidays, aiming to raise the first tranche of $250 million. Sources indicated strong investor interest, with expectations of oversubscription for the issuance.
In a move to demonstrate repayment capacity, the government repaid a $700 million Chinese commercial loan ahead of schedule. Chinese banks have reportedly assured refinancing within the ongoing fiscal year, providing further liquidity support.
Additionally, Pakistan is negotiating with international commercial banks to secure $500 million in fresh financing during the current fiscal cycle. Officials highlighted that these measures are intended to strengthen the country’s external financing position and improve confidence among international investors.
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The Eurobond repayment and proactive engagement with lenders come at a critical time as Pakistan seeks to maintain financial stability and meet the benchmarks of the IMF program. Analysts noted that timely servicing of sovereign debt, combined with new financing initiatives, could help Pakistan bolster investor confidence and support ongoing economic reforms.