LONDON: Pakistan’s Prime Minister Shehbaz Sharif has become the first Pakistani premier to open a trading session at the London Stock Exchange, using his visit to highlight Pakistan’s economic reforms and renewed efforts to attract international investment.
During a ceremony at the LSE headquarters in Paternoster Square on Tuesday, Sharif formally inaugurated Pakistan’s latest US$3 billion dual tranche sovereign Eurobond.
Addressing representatives of the global financial community, Sharif said Pakistan had worked hard in recent years to strengthen its economy and improve key macroeconomic indicators.
“As I speak, we have strengthened our macroeconomic indicators, which are very promising and augur very well for the future,” he said.
The bond issue is Pakistan’s largest-ever international bond transaction, attracting almost US$6 billion in orders from global investors, according to the government.
The transaction is the first issuance under Pakistan’s renewed Global Medium Term Note programme and comes after the country’s inaugural Panda Bond and a series of sovereign credit rating upgrades.
Sharif credited Finance Minister Muhammad Aurangzeb and his economic team for what he described as major structural reforms, including digitisation of the economy and measures aimed at putting Pakistan’s finances on a stronger footing.
He also highlighted the government’s privatisation programme, pointing to the recent privatisation of Pakistan International Airlines and First Women Bank.
Sharif said Pakistan was now preparing to move ahead with the privatisation of other state-owned enterprises, arguing that many of them should be operated by the private sector.
He suggested that the UK and Pakistan could work more closely in this area.
The prime minister also referred to the ongoing Gulf crisis and its impact on investor sentiment, saying investors were increasingly looking for safer markets.
He said Pakistan was managing the economic challenge while also seeking to play a diplomatic role, including efforts to mediate between the United States and Iran.
Sharif told London Stock Exchange Group CEO David Schwimmer that Pakistan wanted to strengthen its engagement with international financial markets beyond sovereign borrowing and attract direct investment.
“We definitely like to seek his guidance and advice on how to further engage international financial markets to play a role in Pakistan,” Sharif said.
He described his participation in opening the LSE session as a significant moment and a step toward rebuilding Pakistan’s relationship with the London financial market.
Sharif also invited Schwimmer to visit Pakistan.
The ceremony was attended by Finance Minister Muhammad Aurangzeb, Adviser to the Prime Minister on Privatisation Mohammad Ali, Pakistan’s High Commissioner to the UK Tipu Usman, LSE Group CEO David Schwimmer and other Pakistani and British officials.
The latest Eurobond forms part of Pakistan’s wider debt-management strategy to diversify sources of financing, extend maturities and reduce refinancing risks.
For Pakistan, the appearance at the London Stock Exchange was also intended to send a broader message: Islamabad wants international investors to view the country not only as a borrower, but as a potential destination for long term investment.
By Safina Khan | VOA News
