Pakistan’s sovereign international dollar bonds rose on Wednesday following the announcement of a Staff-Level Agreement with the International Monetary Fund (IMF) regarding the country’s second and final bailout review of its $3 billion Stand-By Arrangement.
The 2025 bond rose by 2 cents to 92.5 cents per dollar, its highest level in two years. Meanwhile, dollar bonds maturing in 2027 and 2051 have risen sharply.
In January 2024, analysts bet heavily on Pakistan’s sovereign bonds rising for a second year in a row, assuming the IMF extends its bailout agreement.
An asset management firm predicts that Pakistani bonds will offer attractive yields this year, with returns of up to 37% possible over the next 18 months.
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