Pakistan repays $1bn in Eurobonds, says SBP

Pakistan has repaid $1 billion in Eurobonds, State Bank stated on Saturday, a scheduled payment ahead of the South Asian nation seeking a long-term bailout from the International Monetary Fund.

According to the central bank, the repayment, which includes both the principal amount and interest, was made to the agent bank responsible for distributing the funds to the bondholders.

The bond, launched in 2014 and repaid on Friday, was maturing this month.

However, this repayment will cause a decline in the SBP-held reserves to about $7 billion as Pakistan expects to receive an inflow of funds from the International Monetary Fund (IMF).

The SBP’s reserves have shown some improvement in recent weeks, with an increase of $19 million weekly, reaching $8.04 billion as of March 29.