ISLAMABAD, Oct 10: With the successful implementation of first generation structural reforms and gaining economic stability, Pakistan entered international capital markets through the issuance of the debt instruments.

“Pakistan has so far floated three sovereign bonds, the last one was floated on March 23, 2006,” Dr Ashfaque Hassan Khan, Adviser Ministry of Finance told APP here on Tuesday.

He said that Pakistan successfully issued $500 million 10-year notes and $300 million 30-year bonds in the international debt capital market on March 23.

The adviser said that this transaction which represented the first international 144-A bond issued by Pakistan since 1999, raised significant interest among US institutional investors.

He further said that by issuing 10 and 30 years bonds Pakistan completed its primary objective of establishing a full Pakistani International yield curve in record time.

Dr Ashfaque said it was important to note that this offering was the largest ever funding exercise of the government.

He said the largest deal, prior to this transaction, had been the $600 million Sukuk or Islamic bond in 2005.

He said it was the longest ever tenor achieved by Pakistan.

He said that both the new 10-30 year offerings were debut offerings for Pakistan by dollar yield curve was extended out to 30 years in just two years time.

He said the most emerging markets sovereign issues had taken a longer time to extend their yield curve from five to 30 years .

The adviser said it took Philippines four years and Brazil and Turkey three years to extend their yields curve to 30 years.

Having established a relationship with global investors in the international capital markets, Pakistan has now decided to establish a relationship with Global Depository Receipts (GDR) offering for the best corporate assets namely OGDCL, NBP, UBL, HBL and Kapco with a listing on London Stock Exchange.

He added that this would be totally a new set of global investors who will be investing in the share of these scrips.

Dr Ashfaque said that many developed and developing countries had taken this route to showcase not only their country but also their best scrips.

This, he said, is a form of privatisation and there exists a strong relation between privatisation, economic success and Foreign Direct Investment (FDI).

Pakistan, he said has already on the radar screen of international capital market and with the GDR offering, it will also be on the radar screen of the international equity market.

He said that many international bonds had already started publishing research on Pakistan’s economy and the most recent once include research from Union Bank of Switzerland (UBS), J.P Morgan and Deutsche Bank.—APP