KARACHI
\nPakistan has successfully repaid a foreign debt worth $1 billion, days before the 10-year Eurobond was to mature, increasing the confidence of global investors in regard to the domestic economy.
\n\u201cSBP (State Bank of Pakistan) has successfully executed the repayment of $1 billion Pakistan\u2019s International Bond on April 12, 2024 (principal plus interest),\u201d the central bank reported on Saturday.
\n\u201cThe payment was made to the agent bank for onward distribution to the bondholders,\u201d the central bank added. This repayment occurred on Friday, three days ahead of the scheduled maturity date of the 10-year Eurobond, which was to fall on April 15.
\nFollowing this payment, Pakistan\u2019s outstanding foreign debt from international bonds has decreased to $6.8 billion, spread across seven bonds maturing between September 2025 and April 2051.
\nThe recently repaid bond experienced a remarkable surge in value last week, reaching a record-high price of $1 per unit, marking a significant increase from its value of less than half in June 2023.
\nThe surge reflected strong investor confidence in Pakistan\u2019s economy.
\nMoreover, Pakistan\u2019s other global bonds also saw a substantial rally after the nation reached a staff-level agreement with the IMF to secure the final tranche of $1.1 billion. This rally was further fueled by Pakistan\u2019s intent to pursue a longer and larger package with the IMF in June, following the completion of the current $3 billion program in April.
\nThe anticipated IMF tranche of $1.1 billion, likely to be received by the end of April, is expected to restore the reserves to over the $8 billion mark.
\nFollowing the repayment of the $1 billion debt in April, the country\u2019s foreign exchange reserves will experience a decline.
\nPakistan had repaid the last Eurobond of $1 billion days before its maturing date in December despite facing a foreign exchange reserves crisis at that time.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Pakistan has successfully repaid a foreign debt worth $1 billion, days before the 10-year Eurobond was to mature, increasing the confidence of global investors in regard to the domestic economy. \u201cSBP (State Bank of Pakistan) has successfully executed the repayment of $1 billion Pakistan\u2019s International Bond on April 12, 2024 (principal plus interest),\u201d the […]<\/p>\n","protected":false},"author":2,"featured_media":400011,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-400001","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-national"},"yoast_head":"\n