ISLAMABAD – Pakistan will connect its digital payment system to the Arab world’s “Buna” system. The Arab Monetary Fund (AMF) will supervise this system. The new connection will help overseas Pakistanis send money to Pakistan. However, Pakistan cannot send money out through this system. Only money coming into the country will be allowed.
Pakistan is ready to pay $500 million in Eurobonds due on September 30, 2025. State Bank Governor Jameel Ahmad told reporters the payment is fully arranged. He said foreign exchange reserves will not face pressure from this payment.
An IMF review team will visit Islamabad soon. They will complete the second review under Pakistan’s $7 billion loan program. The review talks are set for September 25 to early October. Pakistan must pay $26 billion in foreign debts during 2025-26. The country has already paid $3.5 billion. About $9 billion comes from friendly countries as deposits. These will likely be rolled over when due.
Government sources say Pakistan expects external income or will buy dollars from the market. This will ensure on-time payments.
Pakistan plans to issue new bonds in international markets. This includes Panda bonds in China’s market. The first Panda bond deal may be $200-250 million by December 2025. The $500 million Eurobond was first issued in 2015. It had a 10-year term with 8.25% interest rate. Treasury officials say this is one of two major payments coming due soon. The moves come as Pakistan works to manage its growing debt payments while maintaining stable foreign reserves.
