To Avoid Default, Pakistan Has Prepaid $1 Billion In Sukuk Bonds

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According to the Finance Ministry, Pakistan paid $1 billion in international Sukuk (Islamic bonds) on December 2, three days before the bonds’ expiry date.

The payment was on schedule with what SBP governor Jameel Ahmad had promised a week before, when he indicated that Pakistan will return the $1 billion foreign bond on December 2.

Although there are still worries about Pakistan’s ability to pay its long-term debt, the early payments helped avoid the prospect of a near-term default, according to officials in the finance ministry.

Pakistan must repay around $25 billion for fiscal year 2022-23.

SBP reported earlier on Friday that Saudi Arabia has extended the maturity date of a $3 billion deposit it had made to Pakistan’s central bank.

The extension of the deposit period was explained by the central bank as “a continuance of the assistance offered by the government of Saudi Arabia to the Government of Pakistan.”

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