Pakistan is preparing to repay approximately $1.3 billion in April 2026 upon the maturity of an international Eurobond, covering both the principal amount and interest payments. The repayment comes at a time when the country is under pressure to meet its Net International Reserves targets as part of its $7 billion Extended Fund Facility program with the International Monetary Fund (IMF).
An IMF review mission is expected later this month. The delegation will begin its visit in Karachi before holding key discussions in Islamabad from around March 2. Talks are likely to focus on fiscal reforms, external financing requirements, and progress on structural benchmarks under the program.
To strengthen its external position, the government is planning to access Chinese capital markets through a proposed Panda bond issuance. The Ministry of Finance intends to raise an initial tranche of $250 million shortly after the conclusion of the holidays in China. Officials say investor interest appears strong, with the possibility that the offering could be oversubscribed.
As a signal of repayment capacity, Pakistan has already repaid a $700 million Chinese commercial loan ahead of schedule. According to officials, Chinese banks have indicated their willingness to refinance the facility within the current fiscal year.
In addition, Islamabad is negotiating with international commercial banks to secure around $500 million in fresh financing during the ongoing fiscal cycle. The move is aimed at stabilizing external accounts and maintaining reform momentum under the IMF-supported program.
