LONDON: Pakistan's sovereign dollar-denominated bonds fell as much as 8 cents to hit fresh record lows after Ishaq Dar, who took oath as federal minister on Wednesday, vowed to bring down interest rates and fight inflation.

Shorter-dated issues suffered the biggest decline with the 2024 bond being bid at 40.2 cents on the dollar, according to Tradeweb data.

Apparently on PM’s debt relief plea: Pakistan’s dollar bonds plunge

Bonds due in 2025 and 2027 fell just over 4 cents while longer-dated maturities received bids at just over 36.6 cents in the dollar. Inflation in Pakistan is exceeding 27%.

Dar also called the rupee undervalued and promised a strong response to resolve the South Asian nation's worst economic crisis.

All hell to break loose without debt relief: PM Shehbaz

Long-term worries about Pakistan's finances have been compounded over the last month by devastating monsoon floods.