Prime Minister Shehbaz Sharif emphasized Pakistan’s re-entry into international capital markets and encouraged global investors to explore opportunities within the country during his address at the London Stock Exchange’s market-opening ceremony on Tuesday.
He underscored the nation’s recent economic reforms that have bolstered key macroeconomic indicators, citing the successful $3 billion dual-tranche Eurobond issuance as a testament to Pakistan’s progress. This bond issue, the largest single international bond transaction for Pakistan, included $1.75 billion in a 5½-year bond with a 7.5% coupon and $1.25 billion in a 10-year bond carrying a 7.9% coupon. The offering attracted nearly $6 billion in orders from institutional investors worldwide.
Shehbaz praised the efforts of Finance Minister Muhammad Aurangzeb and other economic officials for their role in improving Pakistan’s economic standing. He described the current macroeconomic indicators as promising and indicative of a positive future trajectory.
In a significant development, the prime minister acknowledged the impact of the Gulf crisis on Pakistan’s economic momentum, stating that without this disruption, the country’s growth would have accelerated more rapidly. He also highlighted Pakistan’s aspiration to act as a mediator between the United States and Iran, expressing hope for a safer regional environment.
Shehbaz pointed out that the evolving global landscape requires investors to reassess markets based on security and stability, positioning Pakistan as an attractive destination for foreign investment. He emphasized that investments in Pakistan could be both profitable and mutually advantageous.
The prime minister expressed the government’s intention to deepen collaboration with the London Stock Exchange and international financial institutions to broaden Pakistan’s access to global capital markets beyond sovereign debt issuance. He stressed the importance of attracting direct investment alongside debt financing.
Highlighting the government’s privatization agenda, Shehbaz mentioned the recent privatizations of Pakistan International Airlines and First Women Bank as examples of transitioning state-owned enterprises to private-sector management. He indicated plans to privatize additional entities, inviting international investors to participate in this process with support from global financial institutions.
Pakistan has been actively diversifying its external financing sources after years of dependence on bilateral and multilateral lenders. The recent $3 billion Eurobond follows a $750 million three-year Eurobond issued in April, marking Pakistan’s return to international bond markets after a four-year hiatus. This strategy aims to extend debt maturities, reduce refinancing risks, and capitalize on improved sovereign credit ratings.
Shehbaz reiterated that ongoing economic reforms, including digitization and structural adjustments, are designed to establish a robust foundation for sustainable growth. He also stressed the need to learn from regional challenges to enhance Pakistan’s appeal as a secure investment destination.
In a gesture of goodwill, the prime minister invited London Stock Exchange Group Chief Executive David Schwimmer to visit Pakistan, recalling Schwimmer’s familiarity with the country and expressing hope that the visit would strengthen ties between Pakistan and international financial markets. Shehbaz requested Pakistan’s High Commissioner in London to extend a formal invitation to Schwimmer.
The ceremony took place at the London Stock Exchange headquarters in Paternoster Square, where Schwimmer and senior officials welcomed the prime minister, marking a significant step in Pakistan’s efforts to attract foreign investment and deepen global financial engagement.
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