ISLAMABAD: Pakistan is set to repay US$1 billion of foreign debt in exchange for 10-year Eurobonds maturing in the middle of this month, taking the stock of debt acquired through bond sales in the international market to US$7 billion. Will be reduced.
The State Bank of Pakistan (SBP) told The Express Tribune that it is ready to repay the bonds at any time and is waiting for instructions to do so from the Finance Ministry.
The move will reduce the stock of debt raised through the sale of Eurobonds and Sukuks (bond-like instruments used in Islamic finance) in international markets by US$7 billion.
This has increased the country's ability to repay all subsequent maturing foreign debts on time.
Following the repayment of US$1 billion in April, Pakistan's foreign exchange reserves will experience a decline. However, the anticipated International Monetary Fund (IMF) tranche of USD 1.1 billion, which is likely to be received by the end of April, is expected to restore the reserves back to the USD 8 billion level.
Muhammad Sohail, CEO of Topline Securities, said the recent increase in inflow of foreign portfolio investors buying shares in Pakistan Stock Exchange (PSX) and treasury bills, as well as the gradual acquisition of U dollars from the market by the SBP contributed to the management of regular debentures. Happening. repayment
The State Bank of Pakistan (SBP) told The Express Tribune that it is ready to repay the bonds at any time and is waiting for instructions to do so from the Finance Ministry.
The move will reduce the stock of debt raised through the sale of Eurobonds and Sukuks (bond-like instruments used in Islamic finance) in international markets by US$7 billion.
This has increased the country's ability to repay all subsequent maturing foreign debts on time.
Following the repayment of US$1 billion in April, Pakistan's foreign exchange reserves will experience a decline. However, the anticipated International Monetary Fund (IMF) tranche of USD 1.1 billion, which is likely to be received by the end of April, is expected to restore the reserves back to the USD 8 billion level.
Muhammad Sohail, CEO of Topline Securities, said the recent increase in inflow of foreign portfolio investors buying shares in Pakistan Stock Exchange (PSX) and treasury bills, as well as the gradual acquisition of U dollars from the market by the SBP contributed to the management of regular debentures. Happening. repayment
