Despite increasing uncertainty, SBP repays its $1 billion bond

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ISLAMABAD: A central bank spokesman said that Pakistan paid back a $1 billion international bond in the face of growing doubt about the country’s ability to meet its external financing obligations.

The country’s economy has been beset by a number of crises, including low foreign exchange reserves, decades-high inflation, and the aftermath of the devastating floods that killed 1,700 people.

In a message to Reuters, State Bank of Pakistan (SBP) spokesperson Abid Qamar stated, “The payment (was) made to Citibank New York.”

According to Bloomberg’s indicative pricing data, the notes rose to 98.9 cents to the dollar on Friday, “marking a nearly 16-cent comeback from a record low of 83 cents in October.”

The chief of the central bank stated last week that the bond repayment will total $1.08 billion and will expire on December 5.

SBP reserves were $7,498.7 million at the end of the week on November 25. Since then, the Asian Infrastructure Investment Bank has given it $500 million.

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