Pakistan’s Eurobond/Sukuk Issuance Unlikely Without Revival of USD 6 Billion IMF Programme: Ministry of Finance

Declining foreign exchange reserves have raised concerns amongst officials at Pakistan’s Ministry of Finance (MoF), regarding the planned issuance of Eurobonds or Sukuk that may prove more expansive, or not be possible, unless the USD 6 billion stalled financing facility under the International Monetary Fund (IMF) materialiszes.

Officials at the MoF stated that without this IMF programme, foreign exchange reserves may get depleted at a faster rate, given future debt requirements, particularly in the second half of the current fiscal period. As of the 2nd of October 2020, total liquid foreign reserves in Pakistan were recorded at USD 19.35 billion.

Pakistan’s MoF is plan...