March 20, 2024 (MLN): Pakistan dollar bonds maturing in 2025 advanced to a two-year high of 92.5 cents on the dollar following the International Monetary Fund’s (IMF) preliminary approval of the final $1.1 billion tranche.

The IMF staff and the Pakistani authorities on Wednesday reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement, subject to the approval of the IMF’s Executive Board.

Notes maturing in 2027 and 2051 also edged up.

To note, the country has about $1bn in dollar-denominated bonds due in April. While on the funding front, the country's FX reserves stand at only $7.91bn.

To meet the high debt obligations, the government has expressed interest in a successor medium-term Fund-supported program.

The cash-strapped nation urgently needs a longer and larger new program to meet its high debt obligations.

Copyright Mettis Link News

Posted on: 2024-03-20T13:29:20+05:00