Pakistan’s central bank on Saturday returned $1 billion in Eurobonds, the pre-paid loans the South Asian nation is seeking for a long-term bailout from the International Monetary Fund.
The bond, which originated in 2014 and was paid on Friday, matured this month.
“Payments have been made to agent banks for redistribution to bondholders,” the central bank said in a statement.
Islamabad has been struggling with a balance of payments crisis, inflation and currency depreciation since the IMF’s standby agreement avoided a sovereign default.
Finance Minister Muhammad Aurangzeb is scheduled to leave for Washington on Sunday to attend the International Monetary Fund-World Bank spring meeting, where he will begin negotiations to rescue Pakistan from the 24-year-old HPG.
In a government statement, Aurangzeb briefed Prime Minister Shehbaz Sharif on the new IMF program.
A $3 billion bailout deal secured by the International Monetary Fund last summer expired Thursday. The final tranche of $1.1 billion is expected to be released after a multilateral creditors’ council meeting later this month.
The two sides have held talks in recent weeks on long-term bailout talks to continue the policy reforms needed to cover the deficit, boost reserves and manage rising debt service.
The head of the International Monetary Fund, Kristalina Georgieva, said on Thursday that she is in talks with Pakistan HPG for the upcoming program.
