By Asif Shahzad
ISLAMABAD (Reuters) – Pakistan’s reserve bank has actually paid back $1 billion in Eurobonds, it stated on Saturday, a scheduled payment ahead of the South Asian country looking for a long-lasting bailout from the International Monetary Fund.
The bond, introduced in 2014 and paid back on Friday, was growing this month.
“The payment was made to the representative bank for onward circulation to the bond holders,” the reserve bank stated in a declaration.
Islamabad has actually been battling with a balance of payments crisis, record inflation and high currency decline given that an IMF standby plan avoided a sovereign default.
Financing Minister Muhammad Aurangzeb is because of leave on Sunday for Washington to go to the IMF-World Bank spring conference, where he will begin settlements for Pakistan’s 24th long-lasting IMF bailout.
Aurangzeb informed Prime Minister Shehbaz Sharif about the brand-new IMF program on Friday, the federal government stated in a declaration.
The IMF standby plan of $3 billion Islamabad protected last summer season ended on Thursday. Its last tranche of $1.1 billion is anticipated to be launched after the multilateral loan provider’s board fulfills later on this month.
The 2 sides have actually spoken in current weeks about working out the longer-term bailout to continue with needed policy reforms to control deficits, develop reserves and handle skyrocketing financial obligation maintenance.
Pakistan remains in conversations with the IMF for a prospective follow-up program, the IMF chief Kristalina Georgieva stated on Thursday.