Pakistan received inflows amounting to $2.5 billion on Thursday evening as proceeds of recently launched Eurobonds.
The State Bank of Pakistan (SBP) has confirmed on its Twitter account that SBP has received the government’s proceeds of $2.5 billion against Eurobond issuance in its account.
As a result, the State Bank of Pakistan’s (SBP) foreign exchange reserves surged to over $16 billion, which is the highest level since July 2017, the SBP said.
#SBP has received the proceeds of government’s US$2.5bn Euro Bond issuance in its account. As a result, SBP’s FX reserves closed above US$16bn today, their highest level since July 2017.
— SBP (@StateBank_Pak) April 8, 2021
Pakistan entered the international capital market for the sale of Eurobonds after a gap of over three years. A multi-tranche transaction of 5-, 10- and 30-year Eurobonds was conducted to build up the foreign exchange reserves.
Pakistan has received approximately $3 billion in overall foreign inflows during the past two weeks. Out of these, nearly $2.5 billion from Eurobond arrived on Thursday night.
In the last week of March, Pakistan received around $500 million from the International Monetary Fund (IMF) as a loan tranche under Extended Fund Facility (EFF) for budget support.
As of April 2, 2021, SBP’s total liquid foreign exchange reserves were $20.679 billion. With the addition of Eurobond proceeds, these foreign exchange reserves are likely to cross the $23 billion mark.