A Dawn story:

Pakistan expects raising up to $1 billion from international capital market on Wednesday (today) through Eurobond launch in New York ahead of executive board meeting of the International Monetary Fund (IMF).

With this, Finance Minister Ishaq Dar is expected to return with at least $1.5bn later this month to deliver on his promise to raise the country’s foreign exchange reserves to the highest ever $21bn.

The forex reserves were recorded at $18.726bn on Sept 11, 2015, including $13.69bn held by the State Bank of Pakistan and $5bn by the commercial banks.

Dar left on Tuesday for New York to lead conclusion of a series of roadshows taking place over the past few days in London and a few major cities in the United States for the launch of Eurobond.

In April 2014, the government had raised $2bn through Eurobond, marking Pakistan’s re-entry into the international capital market after seven years. That transaction involved two bonds of $1bn each with separate maturity and mark up.

These included $1bn bond of five-year maturity and 7.5 per cent interest rate and $1bn of 10-year maturity and 8.5pc return. Informed sources said the finance minister was expecting improved market response and lower pricing on its second Eurobond launch in view of better economic indicators and improved credit rating.

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