Karachi: The price of Pakistan’s Eurobonds has increased in the global market.
After the newly elected government of Prime Minister Shehbaz Sharif informally invited the IMF to negotiate the final tranche of its $1.1 billion loan and a new loan program, the price of Pakistan’s Eurobonds reached a record high in the global market. .
This development convinced global investors to take new positions in emerging foreign bonds on the condition that the country successfully repays all future foreign debt on time.
Eurobonds due 2024 hit a new high of 99.36 cents apiece, according to JS Global Research.
Pakistani foreign bonds, including others, rose as much as 7 percent during the week ended Tuesday, the research house reported.
Tahir Abbas, Head of Research, Arif Habib Limited, said that Prime Minister Shehbaz Sharif’s decision to start negotiations for a new IMF loan program has improved global investors’ confidence in Pakistan and its economy.
Investors took the view that the nation had an excellent plan to repay existing debts. The new package will also give the rulers time to implement the required economic reforms and improve economic activity and growth. He said that along with political transparency in the country, the popularity of bonds is also increasing.
The subsequent election of Speaker and Deputy Speaker of the National Assembly and election for the post of Prime Minister has made it easier for the coalition government to take tough economic decisions to bring the economy out of crisis.
