Pakistan plans to raise funds through dollar bonds next year after nearly five years, marking a turning point for a country that came close to a default two years ago, according to Bloomberg.
The nation plans to re-enter the Eurobond market, Khurram Schehzad, adviser to finance minister said in response to questions, without giving further details. He also reiterated the country’s plan to issue panda bonds this year. The nation last tapped the Eurobond market in 2021.
The planned return to global debt markets underscores Pakistan’s push to diversify funding sources, with support from the International Monetary Fund (IMF) helping strengthen investor confidence and boost returns on its sovereign bonds. The country’s dollar bonds have surged 24 per cent this year, the best performance in Asia.
The fundraising comes after recent credit-rating upgrades by S&P Global Ratings and Fitch Ratings, reflecting improved fiscal management and reform momentum under the Shehbaz Sharif government’s International Monetary Fund-backed programme.
Investor appetite for Pakistan’s debt has improved amid easing global financial conditions, as further rate cuts by the Federal Reserve open a window for frontier economies to regain access to international markets.
Islamabad also plans to raise $250 million through yuan-denominated Panda bonds this year and secured $1 billion in financing from Middle-Eastern banks in June after a hiatus of more than two years.