Pakistan is set to repay approximately $1.3 billion in principal and interest on a maturing Eurobond in April 2026, coinciding with upcoming negotiations with the International Monetary Fund under the country’s $7 billion Extended Fund Facility (EFF).
The IMF review mission is scheduled to visit Pakistan later this month. According to officials, the delegation will spend a few days in Karachi before moving to Islamabad around March 2, 2026 for high-level discussions on fiscal reforms, external financing, and structural benchmarks agreed under the program.
Financing Plans and Panda Bonds
To support its financing needs, Pakistan’s Ministry of Finance plans to issue Panda bonds shortly after the conclusion of Chinese holidays. The first tranche is expected to raise $250 million, with sources indicating strong investor interest and potential oversubscription.
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Officials noted that the government has already repaid a $700 million Chinese commercial loan ahead of schedule, signaling its repayment capacity. Chinese banks have reportedly assured refinancing within the current fiscal year.
Additional Financing Efforts
Pakistan is also negotiating with international commercial banks to secure an additional $500 million in fresh financing during the ongoing fiscal cycle. These measures are aimed at maintaining liquidity, meeting external obligations, and ensuring smooth implementation of reforms under the IMF programme.
The combination of Eurobond repayment, Panda bond issuance, and fresh financing negotiations demonstrates Pakistan’s proactive approach to managing external debt and sustaining investor confidence while critical IMF discussions loom.
