Pakistan’s dollar bonds gain 93pc in 2023

An index on Pakistan’s dollar bonds gained 93 per cent in 2023, the best performance in emerging markets after El Salvador, reported Bloomberg on Wednesday. The agency reported that investors believe Pakistan’s dollar bonds will rally for a second year as the government is expected to secure another bailout from the International Monetary Fund (IMF). The government has recently announced achieving the biggest target for revenue collection. The revenue in the first six months of FY24 surpassed the target given by the IMF. It will help the country receive the last $1.2bn tranche under the Stand-By Arrangement of $3bn. Caretaker Finance Minister Shamshad Akhtar had earlier announced that Pakistan needs to approach the IMF for another bailout package. The financial sector in Pakistan believes that the country would easily secure another bailout package since the government has strictly followed the targets set by the IMF. However, they also pointed out that so far inflation has yet not come under control. Both November and December noted higher inflation of 29.2pc and 29.7pc, respectively, much higher than the target range of 20-22pc.