According to sources, the target for the said bond issue is to lie somewhere between $ 500 million to $ 1 billion, depending on the price. The Government will not hold any roadshow to raise the funds, and expects pricing to be affected due to rating downgrade by Fitch last week. Fitch ratings on 25th of January revised outlook from Stable B Rating to Negative Affirms at ‘B'.

Government of Pakistan is set to finalize the plan for an incumbent bond issue on 7th of February, where they anticipate the pricing to be as per the current plan. This is third such bond issue by the Pakistan’s current administration, the most recent one held during December, 2017.

Fitch said that measures have recently been taken to address trends, including some currency depreciation, tax rebates on exports, and import duties on non-essential items; however, these have proved insufficient thus far to arrest an ongoing decline in reserves.

The target price for the said issue is still at 6.875% as the Government is ready to accept less amount than to compromise on price of the issue. Ministry of Finance has reportedly taken a stand that, it would accept even $500 million but it is not ready to make a compromise on price.

According to sources, during a meeting held yesterday between high ranking MoF officials, it was discussed that the issue will be led by the four banks: Industrial and Commercial Bank of China, Standard Chartered Bank, Citi Bank and Duetsche Bank.

According to preliminary reports, the current target amount is up to $1 billion at 6.785% for a tenure of 10 years. The final go ahead is yet to be given by the Ministry of Finance.