Newsnomics AJAY ANGELINA reporter | Pakistan has successfully repaid the payment of $1 billion international Sukuk (Islamic bonds) on Dec 2, three days earlier before its due date of maturity on December 5, according to the Finance Ministry of Pakistan.
The repayment came in line with the commitment made by SBP governor Jameel Ahmad, said a week earlier that “Pakistan would repay the $1 billion international bond on December 2.”
As the finance minister Mohammad Ishaq Dar assured in November that Pakistan will “absolutely not” default on its debt obligations and payment of $1billion will be met on time.
“We have never defaulted before. We will not even be close to default … Let me clear this categorically that the bond will be paid and there is no delay in this and even arrangements have been made in principle for upcoming payments in the next year,” he reiterated.
Fahad Rauf, the head of research at Ismail Iqbal Securities also mentioned earlier that an important event would be the upcoming $1billion payment on Sukuk, which would give confidence to the market.
The Sate bank of Pakistan also known as the central bank . Wikipedia
Earlier on Friday, Saudi Arabia extended the term for $3 billion deposit it had made to Pakistan’s central bank.
The State Bank of Pakistan (SBP) announced on Friday that Saudi Arabia has extended its term for $3 billion deposit in the central bank through the Saudi Fund for Development (SFD) in support of the country’s economy”, as per King Salman bin Abdul-Aziz Al Saud’s royal directives.
The SBP’s statement today added that the extension in the term “contributed to meet external sector challenges and achieve sustainable economic growth for the country.”
“The extension of the term of the deposit is a continuation of the support provided by the Saudi Arabian government to the Islamic Republic of Pakistan,” the statement concluded. “The deposit aimed to shore up the foreign currency reserves in the SBP and help Pakistan in facing the economic repercussions of the Covid-19 pandemic, contributed to meet external sector challenges and achieve sustainable economic growth for the country.”
