ISLAMABAD, Pakistan: Pakistan’s central bank said it made a scheduled payment of US$1 billion in Eurobonds over the weekend, preceding its application for a long-term bailout from the International Monetary Fund (IMF).

Launched in 2014 and repaid last week, the bond matures this month.

“The payment was made to the agent bank for onward distribution to the bond holders,” the central bank said.

Since a previous bailout arrangement with the IMF standby prevented a national sovereign default, Pakistan’s government has struggled with record inflation, currency devaluation, and a balance-of-payments crisis.

Finance Minister Muhammad Aurangzeb will start negotiations for Pakistan’s 24th long-term IMF bailout when he reaches Washington this week to attend the IMF-World Bank spring meeting.

In a statement, Islamabad said that Aurangzeb briefed Prime Minister Shehbaz Sharif about the new IMF program.

Since the IMF standby arrangement of $3 billion Islamabad secured last summer expired, the two sides have been negotiating a longer-term bailout to continue the necessary policy reforms aimed at reducing deficits, building up reserves, and managing debt.

On April 11, the IMF chief Kristalina Georgieva said that Pakistan is in discussions with the IMF for a potential follow-up program.