ISLAMABAD: Pakistan has paid $1 billion in Eurobonds as a scheduled payment before seeking a long-term bailout from the International Monetary Fund (IMF).<\/p>\n
The bond, which was launched in 2014 and was paid on Friday, was maturing this month.<\/p>\n
State Bank of Pakistan said in a statement that the payment was made to the agent bank for further distribution to the bondholders.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Aurangzeb briefed Prime Minister Shehbaz Sharif on Friday about the new IMF programme, the government said in a statement.<\/p>\n
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.<\/p>\n
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.<\/p>\n