ISLAMABAD: Pakistan is preparing to repay around $1.3 billion in principal and interest on a maturing Eurobond in April 2026 as discussions with the International Monetary Fund intensify under the country’s $7 billion reform programme, a media report said.
According to the report, an IMF review mission is expected to arrive later this month, initially holding meetings in Karachi before moving to Islamabad around March 2 for key negotiations under the Extended Fund Facility (EFF).
The talks are likely to focus on fiscal reforms, external financing requirements and progress on structural benchmarks agreed with the lender.
Officials said the Ministry of Finance Pakistan plans to launch Panda bonds soon after the end of holidays in China to raise an initial tranche of about $250 million, with indications of strong investor interest and expectations of oversubscription.
Sources said the government recently repaid a $700 million Chinese commercial loan ahead of schedule to demonstrate its repayment capacity, while Chinese banks have reportedly assured refinancing within the current fiscal year.
Pakistan is also negotiating with international commercial banks to secure an additional $500 million in fresh financing during the ongoing fiscal cycle to support external financing needs.