Pakistan Readies $1.3bn Eurobond Repayment Amid IMF Talks

Islamabad (Web Desk): Pakistan is gearing up to repay approximately $1.3 billion in principal and interest on a Eurobond maturing in April 2026, as discussions with the International Monetary Fund (IMF) intensify under the country’s $7 billion reform programme, The News reported.

An IMF review mission is expected to arrive later this month, beginning its visit in Karachi before heading to Islamabad around March 2, 2026, for key negotiations under the Extended Fund Facility (EFF). The talks will focus on fiscal consolidation, external financing requirements, and progress on structural reforms agreed upon under the programme.

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Officials revealed that the Ministry of Finance plans to issue Panda bonds soon after holidays conclude in China, aiming to raise an initial $250 million tranche. Sources suggest strong investor appetite, with expectations that the bond could be oversubscribed.

To reinforce confidence in its repayment capacity, the government recently cleared a $700 million Chinese commercial loan ahead of schedule. Chinese banks have reportedly assured refinancing within the current fiscal year.

In addition, Pakistan is negotiating with international commercial banks to secure another $500 million in fresh financing during the ongoing fiscal cycle, as it seeks to strengthen foreign exchange reserves and maintain financial stability.