Pakistan is set to repay about $1.3 billion in April 2026 on the maturity of an international Eurobond, covering both principal and interest, as the country grapples with meeting its Net International Reserves targets under its International Monetary Fund program.
The repayment comes ahead of a review mission by the International Monetary Fund later this month under the country’s $7 billion Extended Fund Facility. The IMF delegation is expected to begin its visit in Karachi before holding key talks in Islamabad from around March 2, focusing on fiscal reforms, external financing needs and progress on structural benchmarks.
The government is seeking to shore up external buffers by tapping Chinese capital markets through a planned Panda bond issuance. The Ministry of Finance aims to raise an initial $250 million tranche shortly after the conclusion of holidays in China, officials said, adding that investor interest appears strong and the offering could be oversubscribed.
In a move aimed at signaling repayment capacity, Pakistan has already repaid a $700 million Chinese commercial loan ahead of schedule. Chinese banks have indicated they will refinance the facility within the current fiscal year, according to the officials.
Islamabad is also in talks with international commercial banks to secure an additional $500 million in fresh financing during the ongoing fiscal cycle as it works to stabilize external accounts and maintain momentum under the IMF-backed reform program.
