On Saturday, the State Bank of Pakistan (SBP) confirmed the successful execution of the repayment of a $1 billion International Bond on April 12, 2024.
The repayment, comprising principal and interest, was transferred to the agent bank for subsequent distribution to the bond holders, as stated by the SBP.
Pakistan’s foreign exchange reserves have shown signs of stabilization in recent weeks, with SBP-held reserves increasing by $19 million weekly, reaching $8.04 billion as of March 29, according to the latest data.
The country’s total liquid foreign reserves amounted to $13.38 billion, with commercial banks holding net foreign reserves of $5.34 billion.
Following this repayment, SBP-held reserves are expected to decrease to approximately $7 billion. However, Pakistan anticipates an inflow from the International Monetary Fund (IMF).
Last month, Pakistani authorities reached a staff-level agreement on the second and final review of the $3 billion Stand-By Arrangement (SBA).
The IMF Executive Board is scheduled to convene in “late April,” with approval paving the way for Pakistan to receive funds of approximately $1.1 billion (SDR 828 million) as the final tranche of the SBA.
In a recent event at the Atlantic Council think tank, IMF chief Kristalina Georgieva remarked on Pakistan’s successful progress with its existing program with the IMF, noting an improvement in the country’s economy and reserve accumulation.
Georgieva highlighted remaining challenges for Pakistan, including enhancing the tax base, ensuring contributions from the affluent section of society, improving public spending direction, and fostering a more transparent environment.
