Pakistan dollar bonds slump after Dar vows to bring down interest rates

Published September 28, 2022
This file photo shows foreign currency dealer counts US dollars at a shop in Karachi. — AFP/File
This file photo shows foreign currency dealer counts US dollars at a shop in Karachi. — AFP/File

The country’s sovereign dollar-denominated bonds fell as much as 8 cents to hit fresh record lows after new finance minister Ishaq Dar 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.

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 per cent.

Dar also called the rupee currency undervalued and promised a strong response to resolve the country’s worst economic crisis.

Discussing the future roadmap, the senator said he would try to stabilise the currency before moving on to other targets.

“Our currency does not deserve to be there where it currently is. I believe some speculators who had been playing the game have now stopped. Before I landed here, they had started going in a good direction,” he added. “Our second priority is to bring inflation and interest rates down.”

To another question, the senator said his predecessor Miftah Ismail did everything he could to fix the economy.

“We will build it more and this is a consistent effort,” he added.

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

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Digital deal
19 Jun, 2026

Digital deal

THINGS have moved rapidly where the Iran-US memorandum of understanding is concerned. While the physical document ...
Failing the public
19 Jun, 2026

Failing the public

WHETHER it is Sindh’s struggle to secure clean drinking water or Balochistan’s difficulty in improving the...
Crushed lives
19 Jun, 2026

Crushed lives

COURTS and commissions have often been up in arms over the health and ecological hazards associated with...
Words that wound
Updated 18 Jun, 2026

Words that wound

Hate speech rarely begins with physical attacks.
‘New urban province’
18 Jun, 2026

‘New urban province’

CONSIDERING the advance state of urban decay that affects Karachi, voices are often raised calling for the megacity,...
Punjab budget: mixed bag
18 Jun, 2026

Punjab budget: mixed bag

PUNJAB’S budget for FY27 is a mix of good and bad political choices, with a cash-strapped centre tightening the...