Pakistan receives $1bn against Euro bonds

The foreign exchange reserves had reached $18.2bn. Source: FILE.

ISLAMABAD: The State Bank of Pakistan (SBP) has received $1 billion proceeds of the government’s tap offering of its recently issued Euro Bond.

According to a statement by the central bank, the SBP’s foreign exchange reserves as of July 13, 2021, had reached US$18.2bn, the highest level since January 2017.

Pakistan issued Eurobonds last week which attracted investors from the international market reflecting improved confidence in the economy and external account.

The foreign exchange reserves of the central bank to a five-year high of $18.2bn with the arrival of funds from the Euro bond. The total reserves at $18.2bn are higher than the $18.14bn it held in the financial year 2015-16. The country’s total reserves include holding of scheduled banks.

Pakistan issued Eurobonds worth $300 million for five-years at a rate of 5.857 per cent, $400m bonds for 10-years at the rate of 7.125pc and $300m for 30 years at the rate of 8.45pc.

Higher foreign exchange reserves helped the county to bring stability in exchange rate, improved current account deficit and offered support to meet the increasing trade deficit.