{"id":24035,"date":"2025-09-15T16:46:36","date_gmt":"2025-09-15T16:46:36","guid":{"rendered":"https:\/\/gsrra.com\/?p=24035"},"modified":"2025-09-23T13:04:14","modified_gmt":"2025-09-23T13:04:14","slug":"pakistans-dollar-bonds-jump-to-four-year-high","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=24035","title":{"rendered":"Pakistan\u2019s dollar bonds jump to four-year high"},"content":{"rendered":"\n
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A foreign currency dealer counts US dollars at a shop in Karachi on May 19, 2022. \u2014 AFP\/File<\/figcaption><\/figure>\n\n\n\n

Pakistan\u2019s sovereign dollar-denominated bonds have continued to rally due to an improvement in economic indicators and credit rating upgrades.<\/p>\n\n\n\n

\u201cPakistan International Bond prices continue to trade upward and have reached a four-year high,\u201d said Topline Securities in a note on Saturday.<\/p>\n\n\n\n

While yields have come down and are below 8.0 per cent, a level seen earlier in Jan-2022. Significant rally in bond prices is attributed to substantial improvement in economic indicators and recent rating upgrade by three international rating agencies, S&P, Moody\u2019s and Fitch, it added.<\/p>\n\n\n\n

Data compiled by a brokerage firm shows that Pakistan\u2019s Eurobonds, worth $1 billion and maturing in April 2031, are priced at 97.3 cents, resulting in a yield of 7.9 per cent.<\/p>\n\n\n\n

Saad Hanif, head of research at Ismail Iqbal Securities, said that Pakistan\u2019s Eurobond rally is driven less by the headline rating upgrades and more by the underlying shift in risk perception.<\/p>\n\n\n\n

\u201cThe upgrades from S&P, Moody\u2019s and Fitch validate what investors were already seeing: a steadier macro backdrop with lower inflation, a shrinking current-account gap, stronger FX reserves and an IMF programme that reduces near-term default risk,\u201d Hanif said.<\/p>\n\n\n\n

\u201cAt the same time, softer US Treasury yields and renewed demand for emerging-market debt have lowered the global cost of capital, while Pakistan\u2019s lack of new Eurobond issuance tightens supply,\u201d he added.<\/p>\n\n\n\n

Together these factors compress credit spreads and push yields below 8.0 per cent, making the ratings improvement a catalyst but not the sole reason for the four-year high in prices, he noted.<\/p>\n\n\n\n

Pakistan\u2019s economy has shown recovery after facing unprecedented challenges. The country\u2019s foreign exchange reserves have nearly tripled, rising from $4.4 billion at the end of FY23 to $14.5 billion by the end of FY25. This is attributed to an improved current account, increased dollar buying by the State Bank of Pakistan, and a surge in remittances.<\/p>\n\n\n\n

\u201cImprovement in Pakistan credit ratings due to increase in foreign exchange reserves and surplus current account is being reflected in prices of euro bonds issued by Pakistan,\u201d said Awais Ashraf, director of research at AKD Securities Limited.<\/p>\n\n\n\n

\u201cThis would help us to raise funds from the international market at cheaper rates and enhance confidence in currency and our external account management,\u201d Ashraf added.<\/p>\n\n\n\n

Pakistan plans to issue its first-ever tranche of Panda bonds before December this year, Bloomberg reported.<\/p>\n\n\n\n

According to the report, Pakistan aims to raise $250 million through the yuan-denominated debt.<\/p>\n\n\n\n

Reference Link:- https:\/\/www.thenews.com.pk\/latest\/1343547-pakistan-s-dollar-bonds-jump-to-four-year-high<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Pakistan\u2019s sovereign dollar-denominated bonds have continued to rally due to an improvement in economic indicators and credit rating upgrades. \u201cPakistan International Bond prices continue to trade upward and have reached a four-year high,\u201d said Topline Securities in a note on Saturday. While yields have come down and are below 8.0 per cent, a level seen […]<\/p>\n","protected":false},"author":1,"featured_media":24036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[4290,23562,132,2557,273,36,23563,60],"class_list":["post-24035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sample-category","tag-stable-economy","tag-dollar-bonds","tag-economy","tag-finance","tag-foreign-exchange","tag-pakistan","tag-pakistans-dollar-bonds-jump-to-four-year-high","tag-geopolitics"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/24035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24035"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/24035\/revisions"}],"predecessor-version":[{"id":24037,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/24035\/revisions\/24037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/24036"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}