The Finance Minister has dispelled all rumours of non-payment of the Islamic bonds and paid $1 billion worth of Sukuk bonds. Pakistan will have to pay $1 billion on December 5, the officials said.
The State Bank had to give a green signal for payment 48 hours earlier, officials said, adding that Pakistan has paid 72 hours early.
The Finance Ministry officials said that Pakistan had already made it clear that it would pay the bond on time, whereas, the Sukuk bond was paid as soon as the New York market opened on Friday.
They added that Pakistan has never defaulted and never will see a default. The premature payment of Sukuk bonds has boosted Pakistan’s confidence in the international market, officials said
Sukuk bond repayments have reduced foreign exchange reserves by $1 billion, officials said, adding that the central bank’s net foreign exchange reserves reached $6.9 billion.
Last night, Dar appeared on the Geo News program and said that very soon an ally country will give $3 billion, which will help in the recovery of the economy. The problem now is that dollars are being smuggled from Pakistan. Currency smuggled from Pakistan to the neighbouring country must be stopped, said Dar.
He said that they are trying to implement the IMF program as much as possible, but the International Monetary Fund (IMF) is not treating the government well. “I am still dealing with the IMF for the sake of the country. Also, know how to complete a program with IMF. We will complete our program with the IMF.”
The managing director of fixed income in New York, said: “This payment is about a decade away because the next payment is due in 2031, which is a long way to go, a long way to improve the situation. While the third maturity payment is due in 2051.
Although, it has settled its short-term debt obligations to Pakistan, its long-term bonds are still trading at troubling levels as investors are unwilling to trust Pakistan’s ability to emerge from the crisis.
Global financial rating agency Fitch Rating has reduced Pakistan’s rating from B-minus to triple C-plus, while earlier, Moody’s also downgraded the long-term debt rating of Pakistan’s economy.