ISLAMABAD: Pakistan will repay $ one billion international bond on December 2, three days before its due date, State Bank of Pakistan (SBP) Governor Jameel Ahmad told briefing.

There has been growing uncertainty about ability of Pakistan to meet external financing obligations with country in midst of an economic crisis and recovering from devastating floods that killed over 1,700 people. Bond repayment, which matures on December 5, totals $ 1.08 billion, Ahmad told briefing, according to two analysts who were present.

Ahmad added that funding has been lined up from multilateral and bilateral sources to ensure repayment would not affect foreign exchange reserves. An immediate inflow of $ 500 million was expected next week on Tuesday from Asian Infrastructure Investment Bank, he said.

Ahmad said reserve levels will depend on continued realisation of expected inflows and rollover of loans from friendly countries, but added he was confident reserve figure will be “much higher” by end of financial year in June 2023.

He told briefing he expects external financing requirements would be met on time because of inflows from international lenders. He pointed out that, despite payments of $ 1.8 billion in November, reserves remained stable.

Published in The Daily National Courier, November, 26 2022

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