Pakistan Set to Make $1 Billion Bond Payment This Month

Pakistan is all set to fulfil its commitment to repay $1 billion on its 10-year dollar bond, set to mature in mid-April. In a post on X, Topline Securities CEO Mohammed Sohail mentioned that this Pak 2024 Bond has rallied by more than 160 percent (excluding coupon) in last 18 months. Sohail highlighted that earlier concerns loomed as the country foreign reserves fell below $3 billion in February 2023 that raised fears of a potential default on bond payments. However, Pakistan not only successfully repaid $1 billion on 2023 Bond but also bolstered its foreign reserves, currently standing at just over $8 billion. He further pointed out that following the $1 billion repayment of the 2024 Bond, Pakistan’s foreign reserves will experience a decline. However, the anticipated IMF tranche of $1.1 billion, likely to be received by the end of April, is expected to restore reserves to the $8 billion mark. Furthermore, recent increases in inflows from portfolio investors purchasing shares and treasury bills, coupled with the State Bank of Pakistan’s gradual acquisition of USD from the market, are contributing to the management of regular debt repayments, Sohail added.