Reserves fall $1.32bn after Eurobond repayment as Pakistan lines up Saudi support

Pakistan’s foreign exchange reserves declined significantly during the week ended April 10, 2026, following the repayment of a major external debt obligation, according to the State Bank of Pakistan.

The central bank reported that its foreign exchange reserves fell by $1.32 billion to $15.08 billion during the period under review after settling $1.426 billion against a Pakistan sovereign Eurobond.

Pakistan successfully repaid a $1.3 billion Eurobond that matured on April 8, 2026, in full and on time as part of routine external debt servicing. In addition to the principal amount, the country also paid $126.125 million in coupon obligations on other Eurobond issuances, Advisor to the Finance Minister Khurram Schehzad said in a statement.

The central bank stated that during the week ended April 10, SBP’s foreign exchange reserves decreased by $1,321 million to $15,079.5 million, primarily reflecting the outflow linked to the Eurobond repayment.

Despite the decline in official reserves, Pakistan’s total liquid foreign exchange reserves stood at $20.52 billion, including $5.44 billion held by commercial banks.

Meanwhile, external financing pressures remain elevated as Pakistan faces a $3.5 billion repayment to the United Arab Emirates later this month, an obligation that is expected to weigh on the country’s reserve position.

To help manage the upcoming payment, Saudi Arabia has committed to provide an additional $3 billion in financial support to Pakistan. The assistance comes on top of Riyadh’s decision to extend the rollover arrangement of an existing $5 billion deposit for a longer tenure.

Finance Minister Muhammad Aurangzeb said Pakistan has already received $2 billion from Saudi Arabia, with the inflow expected to be reflected in the central bank’s reserves data in the coming weeks.