KARACHI: The government raised a historic Rs397 billion ($1.4 billion) in Wednesday’s local currency bond auction.
Surpassing all expectations, this marked the highest borrowing in years in one auction, reflecting robust market interest despite December ending.
Investors’ substantial participation underscores their confidence in long-term bonds, driven by anticipation of an early 2024 rate cut. The government strategically leveraged this opportunity, opting for long-term borrowing, effectively reducing rollover risks and minimizing reliance on short-term funding in the future.
Exploring broader implications of Pakistan’s local currency debt restructuring
This move not only addresses short-term borrowing needs but also provides reassurance to lending agencies, including the IMF, Muhammad Sohail, a leading analyst said.
A strategic step towards debt re-profiling and bolstering financial stability, he added.
Copyright Business Recorder, 2023
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