In a notable turn of events, the price of Pakistani international bonds has soared to a one-year high, marking a significant achievement in the global financial market.
According to reports from a foreign news agency, the value of Pakistani bonds has surged to a 15-month peak, demonstrating a considerable upturn in the country's financial standing.
Despite Pakistan grappling with debt pressures, optimism regarding potential support from the International Monetary Fund (IMF) has contributed to this surge. Notably, the government-issued international bonds have nearly doubled their value since May, a remarkable trajectory indicating growing confidence in Pakistan's financial instruments.
Specifically, the 2036 dollar-denominated bond experienced a rise of 2.4 cents, reaching 57.76 cents, while the 2025 maturity recorded a surge of 2 cents, peaking at 82.37 cents as of May 2022—an impressive milestone, especially for the latter bond.
This recent surge in bond prices, commencing last month, has instilled a sense of optimism among investors. The upcoming elections scheduled for February are anticipated to usher in political stability, a factor crucial for bolstering economic conditions. Investors are hopeful that the political landscape post-elections will pave the way for a more stable and favorable economic environment in Pakistan.
Furthermore, a significant boost came from a recent agreement that unlocked $700 million in IMF funding. This development has further propelled the confidence in Pakistani bonds, signaling positive sentiments in the international financial realm.
Responding to the PTI senators' proposal, Caretaker Information Minister Murtaza Solangi revealed that out of the 905 million Rs 5,000 notes issued, approximately 4.5 trillion are currently in circulation. He reiterated the State Bank's adherence to its regulations and highlighted the institution's independence, a stance established by the previous government.
This call to cease the Rs 5,000 note isn't new. Former head of the Federal Board of Revenue (FBR), Shabar Zaidi, had previously advocated for discontinuing the circulation of the high-value note, echoing concerns about its potential misuse.