KARACHI: Pakistan has successfully repaid more than $1.42 billion in external debt obligations, demonstrating continued fiscal discipline and commitment to timely debt servicing.
Advisor to the Finance Minister, Khurram Schehzad, confirmed that the country repaid a $1.3 billion Eurobond maturing on April 8, 2026, in full and on schedule. In addition to the principal repayment, Pakistan also cleared $126.125 million in coupon payments on other Eurobond issuances.
“This brings total payments today to over $1.426 billion,” Schehzad stated, emphasizing that debt servicing continues to be handled smoothly without disruption.
He noted that the timely execution of these payments reflects improved macroeconomic stability, enhanced liquidity, and stronger external buffers. According to him, the country’s ability to meet large repayment obligations without market stress is a positive signal for global investors and financial institutions.
Financial analysts say the development reinforces Pakistan’s credibility in international markets, especially at a time when emerging economies are facing rising debt pressures. The repayment is also expected to support investor confidence and maintain access to external financing channels.
However, upcoming obligations may continue to put pressure on foreign exchange reserves. Pakistan is expected to repay an additional $3.5 billion loan to the United Arab Emirates this month, along with another $1.3 billion Eurobond payment due by June 2026.
According to the State Bank of Pakistan, the country’s total foreign exchange reserves stood at $21.79 billion as of March 27, 2026, including $16.38 billion held by the central bank and $5.41 billion by commercial banks.
Experts suggest that continued support from the International Monetary Fund and sustained inflows will be crucial to maintaining external stability in the coming months.