On Saturday, the Central Bank of Pakistan announced that it had paid back $1 billion in Eurobonds, as planned, in advance of the South Asian country’s request for an extended bailout from the International Monetary Fund.
This month marked the bond’s maturity. It was issued in 2014 and paid back on Friday.
The central bank said, “The payment was made to the agent bank for onward distribution to the bondholders.”
Since an IMF standby agreement prevented a sovereign default, Islamabad has dealt with a balance of payments crisis, record inflation, and sharp currency devaluation.
To attend the IMF-World Bank spring conference in Washington, Finance Minister Muhammad Aurangzeb is scheduled to depart on Sunday. There, he will begin talks for Pakistan’s 24th long-term IMF bailout.
According to a government statement, Aurangzeb gave Prime Minister Shehbaz Sharif an update on the new IMF program on Friday.
The $3 billion IMF standby agreement that Islamabad obtained last summer ended on Thursday. The final tranche of $1.1 billion is anticipated to be released after the multilateral lender’s board meeting later this month.
In recent weeks, there has been discussion between the two parties over negotiating a longer-term rescue that includes the required policy measures to control rising debt payments, build up reserves, and rein in deficits.
On Thursday, Kristalina Georgieva, the head of the IMF, stated that Pakistan and the organization are in talks for a possible follow-up program.
