ISLAMABAD: Pakistan will repay a $1 billion international bond on Dec. 2, three days before its due date, the governor of Pakistan’s central bank told a briefing on Friday.
There has been growing uncertainty about the ability of Pakistan to meet external financing obligations with the country in the midst of an economic crisis and recovering from devastating floods that killed over 1,700 people.
The bond repayment, which matures on Dec. 5, totals $1.08 billion, Jameel Ahmad, Governor State Bank of Pakistan, told a briefing, according to two analysts who were present.
Ahmad added that funding has been lined up from multilateral and bilateral sources to ensure the repayment would not affect foreign exchange reserves. An immediate inflow of $500 million was expected next week on Tuesday from the Asian Infrastructure Investment Bank, he said.
Pakistan’s reserves with the central bank stood at $7.8 billion as of Nov. 18, barely enough to cover a month’s imports.
Ahmad said reserve levels will depend on the continued realization of expected inflows and rollover of loans from friendly countries, but added he was confident the reserve figure will be “much higher” by the end of the financial year in June 2023.
He told the briefing he expects external financing requirements would be met on time because of inflows from international lenders. He pointed out that, despite payments of $1.8 billion in November, reserves remained stable.
The International Monetary Fund (IMF) said earlier this week that Pakistan’s timely finalization of a recovery plan from devastating floods is essential to support discussions and continued financial support from multilateral and bilateral partners.
Pakistan is currently in an IMF bailout program, which it entered in 2019, but a firm date for the ninth review to release much-needed funds is pending even as it battles a full-blown economic crisis, with decades-high inflation and low reserves.
The central bank raised its key policy rate by 100 basis points to 16% on Friday in an unexpected move to ensure high inflation does not get entrenched.
Pakistan’s central bank chief announces early repayment of $1 billion bond
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Pakistan’s central bank chief announces early repayment of $1 billion bond
- There has been growing uncertainty about the ability of Pakistan to meet external financing obligations
- The bank chief says funding has been lined up from multilateral and bilateral sources amid depleting reserves
Veon Group invests $20 million in Pakistan’s Mobilink Bank to accelerate digital Islamic banking
- The investment builds on $15 million capital deployed by Veon in January 2025
- The capital will be used to scale the bank’s micro, small and medium enterprises
KARACHI: Global digital operator Veon Group has announced an investment of $20 million in Pakistan’s Mobilink Bank to support its growth and digital Islamic banking expansion in Pakistan, it said on Friday.
Mobilink Bank is a part of Veon Group, a global digital operator that provides services to over 150 million connectivity customers and over 140 million monthly active digital users. The Nasdaq-listed company operates across five countries that are home to more than 6 percent of the world’s population.
The investment builds on $15 million capital deployed by Veon in January 2025 and underscores its confidence in Mobilink Bank’s growth momentum and its integrated digital financial ecosystem with JazzCash, amid the rapid expansion of Pakistan’s digital banking and microfinance sector, according to Veon Group.
The capital will be used to scale Mobilink Bank’s micro, small and medium enterprises (MSME) financing portfolio, advance its Islamic banking offerings, and strengthen its evolution into a technology-driven, digitally native bank, with a continued focus on expanding regulated financial access for underserved communities.
“This investment will accelerate the expansion of our shariah-compliant Islamic banking offerings, helping small businesses formalize cash flows, access regulated credit, and build long-term financial resilience,” said Haaris Mahmood Chaudhary, president and chief executive officer of Mobilink Bank.
“As a future-ready digital bank, our focus remains on delivering practical, technology-enabled financial solutions that empower entrepreneurs — particularly women and underserved communities — across Pakistan.”
Mobilink Bank’s expanding deposit base and MSME-oriented lending portfolio are enabling small businesses to transition from informal cash usage to regulated banking, while targeted women-centric financial products and green financing initiatives support inclusive growth and resilience in the face of Pakistan’s climate and economic challenges, according to a statement issued by Veon Group.
Mobilink Bank, together with JazzCash, which serves over 57 million customers and is supported by a nationwide network of more than one million merchants and agents, anchors one of Pakistan’s largest digital financial ecosystems. During the year, JazzCash processed gross transaction value exceeding Rs15 trillion ($53 billion), underscoring the scale, resilience, and impact of fintech in advancing financial inclusion, social mobility, and responsible digital innovation across Pakistan.
The investment reflects Veon Group’s broader digital strategy of strengthening high-impact financial ecosystems through technology-led solutions and disciplined capital deployment, positioning Mobilink Bank as a key contributor to Pakistan’s evolving financial sector, according to the global digital operator.
“This continued stream of investment from VEON underscores our long-term commitment to Pakistan and confidence in the structural shift underway in the country’s digital financial services ecosystem,” Veon Group Executive Committee Member and Chairman Mobilink Bank, Aamir Ibrahim, was quoted as saying.
“It strengthens Mobilink Bank and JazzCash’s ability to execute on our strategic priorities, invest in resilient technology infrastructure, and contribute to the development of inclusive and sustainable digital banking.”
