October 2, 2003	Thursday	Sha’aban 5, 1424

NEW YORK, Oct 1: With Pakistan’s credit ratings inching upwards Wall Street sources here said on Tuesday that “it is an ideal time for Pakistan to access the bond market, as its macroeconomic factors are positive and global capital markets are flushed with liquidity.”

The Standard and Poor’s credit rating agency has given Pakistan a “B” and Moody’s has given Pakistan a “B-3” rating with a positive outlook.

Finance Minister Shaukat Aziz who visited Moody’s and Standard and Poor’s rating agencies on Monday said in an interview “we have had very constructive meetings with the credit rating agencies and Wall Street managers to formulate the further course of action in entering the bond market.”

He said that over a dozen investment banks and Wall Street houses have visited Pakistan to pitch for Pakistan’s return to Euro bond market.

He said that “the proceeds from the Euro bond issue would be used to pre-pay relatively expensive debt and create a positive investor sentiment.”

Mr Shaukat observed that the international and emerging markets were awash with liquidity and recently China, Malaysia, Turkey and Philippines have accessed the bond market despite high reserves maintained by these countries.

“The reason this is being done by these countries is to maintain investor interest and enhance liquidity,” he added.

He underscored that the “return of Pakistan to the capital market will herald a new era in Pakistan’s economic programme and signify a gradual departure of Pakistan from the International Monetary Fund.”

However, he stressed that Pakistan would continue to work with World bank and the Asian Development Bank to secure structural adjustment credits and infrastructure financing and access international bond markets to tap investors and new sources of financing.”