ISLAMABAD: Pakistan is gearing up to repay around $1.3 billion in principal and interest on a maturing Eurobond due in April 2026, as crucial talks with the International Monetary Fund (IMF) draw closer under the country’s $7 billion reform programme, The News reported on Tuesday.
According to officials, the IMF review mission is expected to reach Pakistan later this month. The delegation will initially stay in Karachi for a couple of days before heading to Islamabad around March 2, 2026, to hold key discussions under the $7 billion Extended Fund Facility (EFF).
The upcoming talks are likely to centre on fiscal consolidation measures, external financing requirements and progress on structural benchmarks agreed as part of the programme.
Meanwhile, the Ministry of Finance is planning to launch Panda bonds soon after the conclusion of holidays in China to raise an initial tranche of $250 million. Sources said there are strong indications of investor interest, with expectations that the bond issuance could be oversubscribed.
In a move aimed at demonstrating its repayment capacity, the government has already repaid a $700 million Chinese commercial loan ahead of schedule. Chinese banks have reportedly assured refinancing within the current fiscal year.
Additionally, Pakistan is in negotiations with international commercial banks to secure $500 million in fresh financing during the ongoing fiscal cycle, as it seeks to strengthen its external position ahead of major repayments.
