Pakistan repays $1 bln in Eurobonds ahead of IMF bailout

ISLAMABAD: Pakistan has paid $1 billion in Eurobonds as a scheduled payment before seeking a long-term bailout from the International Monetary Fund (IMF).

The bond, which was launched in 2014 and was paid on Friday, was maturing this month.

State Bank of Pakistan said in a statement that the payment was made to the agent bank for further distribution to the bondholders.

Pakistan has been struggling with a balance of payments crisis, record inflation and a sharp currency devaluation since the IMF’s standby arrangement averted a sovereign default.

Finance Minister Muhammad Aurangzeb is scheduled to leave for Washington on Sunday to attend the IMF-World Bank spring meeting, where he will begin negotiations for Pakistan’s 24th long-term IMF bailout.

Aurangzeb briefed Prime Minister Shehbaz Sharif on Friday about the new IMF programme, the government said in a statement.

A $3 billion IMF standby arrangement in Islamabad last summer expired on Thursday. Its final tranche of $1.1 billion is expected to be released after the multilateral lender’s board meeting later this month.

The two sides have talked in recent weeks about negotiating a long-term bailout, along with policy reforms needed to rein in deficits, build reserves and manage rising debt.

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IMF chief Kristalina Georgieva said on Thursday that Pakistan is in discussions with the IMF for a possible follow-up programme.