Pakistan’s sovereign international dollar bonds rose on Wednesday after the announcement of a Staff-Level Agreement with the International Monetary Fund (IMF) on the country’s second and final bailout review of its $3 billion Stand-By Arrangement.
The 2025 bond rose up by 2 cents to 92.5 cents on the dollar, the highest in two years. Meanwhile, dollar bonds maturing in 2027 and 2051 also rose sharply.
Analysts in January 2024 bet big on Pakistan’s sovereign bonds to rise for a second consecutive year on the condition that IMF extends its bailout agreement.
An asset management company forecast Pakistani bonds to offer attractive yields this year, with returns of up to 37 percent possible in the next 18 months.
It is noteworthy that Pakistan avoided a sovereign default after obtaining a $3 billion bailout from the IMF in July. Last year, the move propelled the country’s bonds to rank among the greatest performers in the world.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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