London July 7 2023: Prices of Pakistan bonds and Sukuks floating in the international market drop sharply during the trading today as IMF staff to discuss IMF deal with opposition leader Imran Khan.
“IMF staff are in the process of meeting with representatives of the major political parties in Pakistan, including PML-N, PPP, and PTI, to seek assurances of their support for the key objectives and policies under a new IMF-supported program ahead of the approaching national elections” says IMF representative for Pakistan Esther Perez ruiz.
Price of Pakistan International Bond having maturity of 8th July 2031 drop the most by 3.39 cents or 8.3 percent to trade at 43.39 cents, according to data available at Reuters.
Pakistan International bond with maturity 3rd March 2036 drop by 3.62 cent or 7.8 percent in today trading session. Bond maturing in April 2024, September 2025, April 2026 and December 2027 are down by 1.8 cents (2.3 percent), 4.1 cents (6.8 percent), 3.4 cents (6.5 percent) and 3.2 cents (6.5 percent).
However, since IMF deal Pakistan International Bonds and Sukuks provided return of 21 percent on average. The international bond maturing on April 2024 gain the most by 35 percent.
“PTI's economic team has been approached by the IMF to solicit the party's support for the USD 3 BN Stand-By Agreement and its broad objectives” says Hammad Azhar senior member of PTI.
“An IMF team will call on Party Chairman Imran Khan at Zaman Park this afternoon. Both PTI's economic team and the IMF team will join, in person and virtually, to take part in the discussions” he added.
On June 30th, the IMF staff and the Pakistani authorities have reached a staff-level agreement for the disbursement of amount of USD 3 billion on policies to be supported by a Stand-By Arrangement (SBA).
The IMF Executive Board meeting to consider a $3 billion loan program for Pakistan will be held on July 12, the Washington-based lender said in an emailed statement.