Pakistan will turn to overseas bonds market after IMF bailout: Hafeez Shaikh

ISLAMABAD: Prime Minister’s Finance Adviser Abdul Hafeez Shaikh has said that Pakistan will turn to the international bonds market, after approval of the six billion dollars package from the International Monetary Fund.

In an interview to Bloomberg, Hafeez Shaikh said that preparations are underway for the sale of Eurobonds, Sukuk and Chinese currency bonds in the new financial year started in July.
The IMF Wednesday approved $6 billion bailout program for Pakistan.

Hafeez Shaikh, who negotiated with the IMF for the bailout said, “the economy was in a bad shape.”

“The idea was to shore up the external front. We have been able to mobilize resources,” he said.

Pakistan’s government relied on funds from allies like Saudi Arabia as well as from the World Bank and Asian Development Bank to boost the country’s finances after years of economic mismanagement.

The return to global markets will be a key test for the government of Prime Minister Imran Khan as he seeks to turnaround the economy and diversify sources of funding.

Pakistan had last tapped the overseas bonds market in November 2017, and raised $2.5 billion.

The Adviser, who was appointed in April as the government made changes in its economic team, said “We have taken some tough decisions and will continue to do so.”

It is to mention here that the government took some unpopular decision including hike in gas and electricity prices and raised interest rates to deal with the economic crisis ahead of the approval of IMF bailout package.