ISLAMABAD – Eurobonds and Sukuk improved as Pakistan’s $350billion economy is reviving after two-year slump amid political volatility, and a chronic balance of payments crisis as the country is again taking loan from International Monetary Fund.
The value of Eurobonds and Sukuk saw an uptick in global markets ahead of the IMF final approval of a $7 billion loan program on September 25. The USD-denominated bond prices increased by over 19 cents during the week ending September 13.
IMF Board was slated to approve Islamabad’s loan last month, but it was delayed due to uncertainty among international investors about the country’s economic outlook.
Recent data reveals notable gains in both Sukuk and Eurobonds as recent upgrades in Pakistan’s credit ratings by Moody’s and Fitch also helped restore global investor confidence.
These bonds are further expected to improve after IMF’s approval of the loan, and such developments would facilitate foreign financing from other lenders.
