Pakistan dollar bonds slump after Ishaq Dar vows to cut interest
After Ishaq Dar, who took oath as federal finance minister, vowed to cut interest rates and fight inflation, Pakistan’s sovereign dollar-denominated bonds fell by 8 cents to hit fresh record lows.
According to TradeWeb data, short-term bonds were more affected by the Dar’s statement, with bonds maturing in 2024 being offered at 40.2 cents per dollar.
Bonds maturing in 2025 and 2027 fell about 4 cents, while long-dated dollar bonds traded at 36.6 cents in the dollar.
According to the recent report, inflation in Pakistan has exceeded by 27 percent.
Senator Ishaq Dar, while discussing the future roadmap, said that he would stabilize the currency before moving on to other goals.
Finance Minister Ishaq Dar said that the speculators should not be allowed to harm Pakistan by holding country’s currency hostage.
He further said that his second priority would be to bring down inflation and interest rates.
In response to a question, the senator said that Miftah Ismail took all possible steps to fix the economy.
Last month’s devastating floods have added to Pakistan’s financing woes.