Pakistan to repay $1.3 billion Eurobond in April 2026, Panda bond issuance expected after China’s holidays

Pakistan is preparing to repay around $1.3 billion in foreign debt in April 2026, which includes both principal and interest on an international Eurobond, as part of its ongoing efforts to meet targets under its program with the International Monetary Fund (IMF), The News reported. 

The upcoming repayment comes as the IMF review mission is scheduled to visit Pakistan later this month. The mission will spend a few days in Karachi before arriving in Islamabad around March 2, 2026, for key discussions under the $7 billion Extended Fund Facility (EFF). These talks will focus on fiscal reforms, securing external financing, and progress on structural benchmarks agreed upon under the program.

In a move to raise funds, the Ministry of Finance plans to issue Panda bonds shortly after the Chinese holidays, targeting the first tranche of $250 million. Early indications suggest strong investor interest, with expectations of oversubscription for the bond issuance.

Pakistan has also demonstrated its repayment capacity by repaying a $700 million Chinese commercial loan ahead of schedule. Chinese banks have reportedly assured refinancing within the ongoing fiscal year. 

Additionally, Pakistan is in negotiations with international commercial banks to secure another $500 million in fresh financing during this fiscal cycle.