{"id":54794,"date":"2024-11-03T13:52:55","date_gmt":"2024-11-03T08:52:55","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=54794"},"modified":"2024-11-03T14:12:57","modified_gmt":"2024-11-03T09:12:57","slug":"pakistan-struggles-to-tap-international-bond-market","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/pakistan-struggles-to-tap-international-bond-market\/","title":{"rendered":"Pakistan struggles to tap international bond market"},"content":{"rendered":"<p>KARACHI: <a href=\"https:\/\/dailyausaf.com\/en\/business\/funds-flow-back-to-pakistans-local-bonds-as-economy-stabilizes\/\">Pakistan&#8217;s economy<\/a> is facing significant stress due to the government&#8217;s inability to launch Euro and <a href=\"https:\/\/dailyausaf.com\/en\/business\/pakistan-to-issue-panda-bonds-in-chinas-capital-market-details-inside\/\">Panda bonds<\/a>, which may hinder the country&#8217;s efforts to secure improved ratings from international rating agencies.<\/p>\n<p>Despite attempts to convince top rating agencies in Washington of the economy&#8217;s improved<a href=\"https:\/\/dailyausaf.com\/en\/business\/pakistans-economy-is-in-icu-and-on-ventilator-says-s-m-tanveer-saqib-fayyaz-magoon\/\"> macroeconomic<\/a> numbers, a favorable outcome remains elusive.<\/p>\n<p>However, there have been some positive developments. Two rating agencies, Fitch and Moody&#8217;s, have upgraded Pakistan&#8217;s rating by one notch, to CCC+ and Caa2, respectively.<\/p>\n<p>Furthermore, the<a href=\"https:\/\/dailyausaf.com\/en\/business\/state-bank-of-pakistan-extends-deadline-for-encashment-of-prize-bonds\/\"> State Bank of Pakistan<\/a> (SBP) has found an alternative source of dollars, purchasing $1.3 billion from the interbank market in June and July.<\/p>\n<p>The government&#8217;s efforts to diversify its financing base by launching Panda bonds in the Chinese market have been unsuccessful, with Chinese companies showing limited interest despite potentially higher returns.<\/p>\n<p>This lack of interest is also reflected in the failed sale of Pakistan International Airlines (PIA), with only one domestic real estate developer qualifying for bidding.<\/p>\n<p>Prime Minister Shahbaz Sharif&#8217;s recent visits to Saudi Arabia and Qatar yielded announcements of billions of dollars in investments, but the financial market remains skeptical.<\/p>\n<p>Experts suggest that the SBP can mitigate economic stress by purchasing maximum dollars from the local market, restricting imports, maintaining a stable exchange rate, curbing illegal foreign currency transactions, and incentivizing overseas Pakistanis to send remittances.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>KARACHI: Pakistan&#8217;s economy is facing significant stress due to the government&#8217;s inability to launch Euro and Panda bonds, which may hinder the country&#8217;s efforts to secure improved ratings from international rating agencies. Despite attempts to convince top rating agencies in Washington of the economy&#8217;s improved macroeconomic numbers, a favorable outcome remains elusive. However, there have [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":54796,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[3657,23604,23603,21644],"class_list":["post-54794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-pakistan-international-airlines","tag-euro-and-panda-bonds","tag-pakistan-economic-challanges","tag-state-bank-of-pakistan-sbp"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/54794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=54794"}],"version-history":[{"count":3,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/54794\/revisions"}],"predecessor-version":[{"id":54801,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/54794\/revisions\/54801"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/54796"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=54794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=54794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=54794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}