Pakistan’s dollar bonds fell on Wednesday after Ishaq Dar hinted atslashing interest rates on the very first day of taking charge as thefinance minister.
The country’s sovereign dollar-denominated bonds slumped by 8 cents to hitrecord lows with the country’s 2024 dollar bond being traded at 40.2 centson the dollar, reported Reuters.
The finance minister talking to the media following the swearing-inceremony said that interest rates will need to be managed and added thatthe Rupee is currently undervalued and steps will also be taken to manageit.
The newly appointed minister, who has taken charge of the ministry after agap of almost five years, has also set sights on reducing inflation.
The country has been in a grip of record-breaking inflation in recentmonths with Consumer Price Index-based inflation (CPI) for August touchingthe highest level in nearly fifty years.
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Last week, Pakistan’s dollar bonds fell after Prime Minister Shehbaz Sharifmade an urgent appeal for debt relief from the rich countries in the wakeof one of the worst floods in the country’s history.
The then finance minister, Miftah Ismail, had clarified at the time thatPakistan is neither seeking nor it needs any relief from commercial banksor Eurobond creditors. He had categorically said that Pakistan will paythe $1 billion bond due in December on time.
