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Pakistan’s dollar bonds rallied by 1-2 points after sources reported that they were in talks with the IMF for a new $2.5bn quick standby assistance ahead of the June 30 expiration of the EFF programme. Pakistan’s Finance Minister Ishaq Dar said that he expects a staff level agreement with the IMF over its EFF programme to be signed within the next 24 hours. Under the agreement, $1.1bn will be initially unlocked followed by a “standby agreement” to release the remainder after the programme terminates. IMF’s $6.7bn EFF programme, has been delayed since November after having already disbursed $4bn with discussions over the release of the remaining amount. Earlier this week, the Pakistan parliament approved a revised budget that introduced new taxes and expenditure cuts and met conditions set by the IMF.
Pakistan’s bonds have rallied about 10-20% since the beginning of this week. In particular, its 8.25% 2024s rallied 19.7% to trade at 63 cents on the dollar.
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