Pakistan's Eurobonds, Sukuk lead global market, reflecting investor confidence
Pakistan's Eurobonds and Sukuk have emerged as top performers in the global market, underscoring foreign investors' growing confidence in Pakistan and the newly elected government post-election.
Arif Habib Limited reports that Pakistan's $1 billion worth of 10-year bonds maturing on April 15 reached a record high of 98.11 cents on February 7. Currently, global investors hold a substantial $7.80 billion investment in Pakistani bonds, which are set to mature between April 2024 and April 2051.
Tahir Abbas, Head of Research at Arif Habib Limited, highlighted the remarkable surge in the value of Eurobonds over the past seven months, positioning them as the premier bonds globally. The primary drivers behind the surge in Pakistani bond prices include the recent elections in Pakistan, the anticipated agreement on an IMF program by the new government, and the central bank's forecasted policy rate cuts until December 2024.
This surge in bond performance not only reflects investor confidence in Pakistan's economic stability but also suggests optimism regarding the future trajectory of the country's fiscal policies under the new government.
Investors and analysts are closely monitoring these developments, expecting continued growth and stability in Pakistan's bond market as economic reforms and policy adjustments take shape under the new administration.
