Pakistan successfully executes repayment of US $1 billion

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2024-04-14T09:13:52+05:00 Imran Ali Kundi

ISLAMABAD  -  Pakistan has successfully executed the repayment of US$ 1 billion Pakistan’s International Bond (principal plus interest).

“SBP has successfully executed the repayment of US$ 1 billion Pakistan’s International Bond on 12Apr2024 (principal plus interest).

The payment was made to the agent bank for onward distribution to the bond holders,” State Bank of Pakistan (SBP) said on Saturday. The payment of one billion bond would reduce the volume of Pakistan’s foreign exchange reserves. The reserves held by the central bank would reduce to $7 billion.

The total liquid foreign reserves held by the country stood at US$ 13.378 billion as of 29-Mar-2024. The break-up of the foreign reserves position is as foreign reserves held by the State Bank of Pakistan US$ 8.040 billion and net foreign reserves held by commercial banks are US$ 5.338 billion. During the week ended on 29-Mar-2024, SBP’s reserves increased by US$ 19 million to US$ 8.040 billion. However, the overall country’s foreign exchange reserves would decline to $12.378 billion now.

Pakistan is expecting to receive $1.1 billion from the International Monetary Fund (IMF) by the end of current month. In last month, Pakistan and International Monetary Fund (IMF) had reached on staff level agreement on the second and final review of Pakistan’s stabilization program supported, which is subject to approval by the Fund’s Executive Board, upon which the remaining access under the SBA, US$1.1 billion will become available.

The country had already borrowed $9.578 billion from multiple financing sources during the first eight months (July-February) of the current fiscal year 2023-24. The government had received $1.9 billion from the International Monetary Fund (IMF) of the $ 3 billion Stand-By Arrangement (SBA). Meanwhile, Pakistan had received $2 billion from Saudi Arabia and one billion dollars from United Arab Emirates (UAE). The country received $ 686.82 million under the head of “Naya Pakistan Certificate” during the first eight months of the current fiscal year 2023-24.

The country received $ 2.635 billion from multilaterals and $ 847.95 million from bilateral during July-February 2023-24.

China further disbursed 67.39 million in July-February against the government budgeted of $ 18.54 million for the current fiscal year. The Asian Development Bank (ADB) disbursed $ 643.62 million during the period under review compared to the budgeted $ 2.086 billion for the fiscal year 2023-24.

Saudi Arabia disbursed $ 595.18 million against the budgeted $ 600 million under the head of oil facility during July-February 2023-24. Saudi Arabia disbursed another $ 59.10 million in the current fiscal year so far. The USA disbursed $ 34.73 million in the first eight months against the budgeted $ 21.60 million for the fiscal year. Korea disbursed $ 19.83 million and France $ 36.42 million during the current fiscal year. The IDA disbursed $ 1.221 billion in July-February against the budgeted $ 1.489 billion for the current fiscal year and IBRD $ 152.92 million against the budgeted $ 840.36 million. The IsDB (Short-term) disbursed $ 200 million in July-February against the budgeted $ 500 million for the current fiscal year and AIIB disbursed $ 299.47 million, while IFAD disbursed $ 25.60 million against the budgeted $ 42.68 million for the current fiscal year.

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