$2.5bn raised in gt’s first foray into international market
ISLAMABAD: A day after ouster of Finance Minister Dr Abdul Hafeez Shaikh, the go nment raised $2.5 billion in three dollar bonds of five, 10 and 30 years from the international capital market on Tuesday.
Receiving over 50 per cent oversubscription to $5.3bn, this was the first international capital market transaction since the Pakistan Tehreek-i-Insaf came to power in August 2018. Last week’s revival of the $6bn IMF programme after a year of virtual suspension followed by $1.3bn commitment from the World Bank have improved investor confidence.
Meanwhile, the State Bank of Pakistan (SBP) on Tuesday received $498.7 million (equivalent to SDR 350) tranche from the International Monetary Fund.
The go nment contracted $1bn 5-year bond at an interest rate of 6pc, another $1bn of 10 years at 7.375pc and about $500 million of 30-year bond at cut-off yield of 8.875pc, sources in the ministry of finance and debt office told Dawn.
Our borrowing will not stop. No wonder it was oversubscribed, the interest rates are way above the international rates
IMF and WB are ruling Pakistan. IK just has to follow their directions.
Accumulation of more debts, is that an achievement. When economy is set to grow at 1.5 % next year how they will give return of 6% and more to investors.
Imtiaz Syed New York
Would someone in go nment explain strategy how to payback these huge loans. This will in fact erode the value of rupee vs. dollar and not depreciation of US dollar as artificially being claimed.
loans to pay loans.
Borrowing from one person to pay off another person is not a permanent solution.
Bonds are same as loans. No country is willing to invest under current scenario. Selling bonds is not an acheivement. Future generations will have to suffer.
This gt making sure that we go to the worse of debt structure.failyre after failure.all we do is beg.
That’s pretty good debt returns, just come with risk in case of PKR looses value. If there is no currency conversion then I would also invest in this product.
What are interest rates like in Pakistan local banks?
So much that our enemies will be totally jealous. I can guarantee nobody has ever seen this much money.
So what changed for Pakistan under the new administration.Is Pakistan wrap up the Belt and Road initiative or promising something else to US?
Justice For All
It all has to start somewhere i am just glad we have a smart, intelligent leader who see's a future in Pakistan and not in London properties - So please people stop going on about debts because every country has them.
Its loan again.
This is such a proud moment for entire nation
Adnan Mazher Khan
Investors only trust honest leadership. Well done Imran Khan. You have made us proud.
Mic and Speaker
For borrowing money at 3 times interest rate than Normal Market Rate !!
Dr. Sria, Aamir Ahmad
As always, keep it up and hang on tough.
Congrats. Great job