ISLAMABAD — Pakistan is set to repay around $1.3 billion in principal and interest on a maturing Eurobond in April 2026, amid ongoing negotiations with the International Monetary Fund (IMF) under the country’s $7 billion reform programme, The News reported.
Officials said the IMF review mission will arrive later this month, initially staying in Karachi for a few days before moving to Islamabad around March 2, 2026, to conduct key discussions on fiscal reforms, external financing, and progress on structural benchmarks under the $7 billion Extended Fund Facility (EFF).
The Finance Ministry plans to issue Panda bonds shortly after China’s holiday season ends, targeting the first tranche of $250 million. Sources indicate strong investor interest, with expectations that the issuance will be oversubscribed.
In a move to demonstrate repayment capacity, the government recently cleared a $700 million Chinese commercial loan ahead of schedule. Chinese banks have reportedly pledged to provide refinancing within the current fiscal year.
Additionally, Pakistan is negotiating with international commercial banks to secure an extra $500 million in fresh financing during this fiscal cycle to bolster its external liquidity.