Pakistan bonds show stability in international market

Good news for the national economy as Pakistan’s bond in the international market has achieved a three-year stable level, reflecting growing confidence in the country’s Eurobond, ARY News reported on Friday, citing sources.

According to sources, all default risks associated with Pakistan in the global bond market have been eliminated as the Pakistan bonds are showing stability in the international market.

The details show that the risk premium on Pakistani bonds has decreased from 61.4% to 7.79%. The risk on the repayment of the $1.2 billion Eurobond due in 2026 has declined to 8.5%, while the $1.5 billion bond maturing in 2027 now carries a risk of just 9.1 per cent.

Similarly, the repayment risk for the $1 billion bond due in 2029 has dropped from 28.8% to 9.4 per cent.

With fears over Pakistan’s foreign exchange reserves easing, the country is now in a position to re-enter the international bond market with greater confidence.

In January, Finance Minister Muhammad Aurangzeb said Pakistan to launch Panda Bond by June this year with an aim to enhance country’s presence in China’s capital markets.

In an interview with international news channel, he said through the issuance of the Panda Bond, Pakistan intends to raise approximately two hundred million US dollars from Chinese investors.

The Minister said that this step is part of a broader strategy to transition Pakistan’s economy towards export-driven growth, with a focus on achieving sustainability in the country’s balance of payments.

He also highlighted the critical importance of the second phase of the China-Pakistan Economic Corridor.