Viewpoint: Eurobond: Success and significance
Courtesy:- Ishaq Dar After seven years, Pakistan has staged a successful comeback in the global capital market by selling Eurobonds to the tune of $2 billion — the largest ever bond offering by Pakistan. But some in the country are not fully appreciative of the significance of this and there are misgivings, too, which I will address in this article. Those who follow budgetary proposals are aware that since 2007-08, Pakistan would budget a $500 million foreign inflow on account of the bond issue, which, however, would remain elusive, as economic performance would not justify such issuance. An abortive attempt in 2010-11 was particularly notable. After seven years this effort has finally succeeded. Against a planned size of $500m, the bond has attracted subscription of nearly $7bn, which was 14 times our expected amount. This performance constitutes a vote of confidence in the government’s policies. Throughout the roadshows we were given an unusual reception by global inv...