Pakistan repays $1.43bn in Eurobond obligations as reserves remain under pressure

Pakistan on Tuesday repaid a $1.3 billion Eurobond maturing on April 8, 2026, in full and on schedule, as part of its routine external debt management, according to Adviser to the Finance Minister Khurram Shehzad.

The country also paid $126.125 million in coupon obligations on other Eurobond issuances, bringing total outflows for the day to over $1.426 billion, Shehzad said in a post on X.

“Debt servicing continues to be executed as a non-event — reflecting consistency, discipline, and strengthened capacity,” he said.

Shehzad said the performance was underpinned by stable external buffers, improved liquidity, continued macroeconomic stabilisation, strengthening investor confidence, and a more disciplined debt trajectory. He added that the seamless execution of large repayments reinforces Pakistan’s credibility with global investors and financial institutions.

However, near-term pressures on the external account persist.

Pakistan is expected to return a $3.5 billion loan to the United Arab Emirates later this month, according to a Reuters report citing government officials. The report also flagged risks to programme targets under the International Monetary Fund, with another $1.3 billion Eurobond repayment due by June.

The additional outflows could strain foreign exchange reserves, which remain a key metric under Pakistan’s IMF programme.

Data from the State Bank of Pakistan showed foreign exchange reserves at $16.38 billion for the week ended March 27. Net reserves held by commercial banks stood at $5.41 billion, taking total reserves to $21.79 billion.