Pakistan issues $500 million Eurobonds for 10 years

UN/NEW YORK/WASHINGTON: With its economy on the upswing, Pakistan on Friday issued a new 10-year bond of $500 million in the international Eurobond market that raised nearly dollars one billion, Finance Minister Ishaq Dar said on Saturday. Dar also met US Deputy Secretary Treasury Sarah Bloom Raskin and President Overseas Private Investment Corporation (OPIC) in Washington and apprised them of the remarkable turnaround of Pakistan’s economy. US Under Secretary of State Ms Catherine Novelli also called on Ishaq Dar in Washington and discussed various issues including the economic progress in Pakistan.
Speaking to reporters in New York, Dar said that Pakistan went ahead by issuing the bond despite the advice that the market situation was not favourable, as some financially strong countries had postponed their bids. But Pakistan’s sound economy helped in evoking a good response from the market, even though there were some negative factors, Dar said. The coupon rate was 8.25%, equivalent to the rate at which it issued the same bonds in April last year.
Roadshows were conducted for launching the bond in London, Los Angeles and Boston by a team comprising Finance Secretary Waqar Masood Khan and Governor State Bank of Pakistan Ashraf Wathra.
Finance Minister Dar led the final roadshow in New York on Wednesday and the pricing of the bond was held on Thursday.
Dar said the critical reforms carried out by Prime Minister Nawaz Sharif’s government had helped Pakistan’s get into a robust shape from a situation of default when the PPP government had left the office.
The launching of the Euro Bond, the third global issue in less than two years, highlights the government’s lack of commitment to structural reforms hampering the economic growth, he added.
Ishaq Dar met US Deputy Secretary Treasury Sarah Bloom Raskin and President Overseas Private Investment Corporation (OPIC) in Washington and apprised them of the remarkable

turnaround of Pakistan’s economy in a short span of two years.
During the meeting with Raskin, Senator Dar stated that the resurgence of Pakistani economy was recognised by global financial institutions and rating agencies. He specifically mentioned the sharp decline in inflation and fiscal deficit, enhanced GDP growth and record increase in foreign exchange reserves and home remittances. Dar highlighted that the successful issuance of $500 million Euro Bonds in the most difficult and volatile global stock and bond markets was a reflection of confidence of global investors in the Pakistani economy.
The finance minister reassured the deputy secretary that the government was committed to pursuing reforms undertaken and planned in the energy and growth sectors. He explained the government roadmap of overcoming the existing energy shortages in medium and long terms.
Dar also shared the details of successes of armed forces during the Zarb-e-Azb operation in Pakistan and National Action Plan for dignified return and rehabilitation of Temporarily Displaced Persons to their homes.
Deputy Secretary Raskin complemented the finance minister on the successful issuance of Euro Bonds which clearly showed investors’ great confidence in resilience and direction of Pakistan’s economy. She observed that Pakistan’s economy had the potential of enhanced growth in line with other economies of the region.
She also praised the way the Pakistan government and parliament swiftly moved after the December 2014 terrorist attack on the Army Public School, Peshawar, and came up with a comprehensive National Action Plan to combat terrorism.
She also felicitated the finance minister on successful issuance of $500 million Euro Bonds in an extremely volatile global bond and stock markets. She stated that OPIC currently had a portfolio of $800 million which includes three wind energy projects of 50MW each and a project in the Agha Khan hospital.
Dar expressed the hope that OPIC will be able to join the government’s efforts in the energy sector.
Meanwhile, the United States has stressed the need to continue building a momentum on expanded trade, investment and economic cooperation with Pakistan.
The desire was expressed by US Under Secretary of State Ms Catherine Novelli during a meeting with Finance Minister Ishaq Dar in Washington.
She offered support to the ongoing efforts of Pakistan to rehabilitate the Temporarily Displaced Persons (TDPs). Dar shared with her the important achievements in the economic sector that led to upgrading of Pakistan’s economic outlook in recent months.
The finance minister also briefed the US side on the ongoing efforts for return and rehabilitation of temporarily displaced persons to their homes in North Waziristan following the clearing of areas by the successful military operations.
Ms Novelli congratulated the finance minister on the remarkable turnaround of Pakistan’s economy in a short span of two years. She appreciated the significant improvement in the security situation in the country and stressed on the need to continue building the momentum on expanded trade, investment and economic cooperation between Pakistan and the United States. She offered support to the ongoing efforts of Pakistan to rehabilitate the TDPs.