SBP repays $1bn against euro bonds
The State Bank of Pakistan (SBP) has repaid $1 billion against euro bonds, creating goodwill for the bonds in the near future. Pakistan on Friday successfully made a payment of $1bn on an international bond, which included principal plus interest, the central bank said in a statement on Saturday. “The payment was made to the agent bank for onward distribution to the bond holders,” it added. Pakistan’s USD-denominated bonds rallied by 84 per cent in 2024. The central bank has been struggling hard to manage reasonable foreign exchange reserves to satisfy the donor agency, the International Monetary Fund (IMF), and to keep the exchange rate stable. With the outflow of $1bn, the bank’s reserves will fall again close to $7bn. Currently, the SBP’s reserves are around $8bn.