LONDON: Prime Minister Shehbaz Sharif on Tuesday urged global investors to explore opportunities in Pakistan, saying recent economic reforms and improvements in key macroeconomic indicators had strengthened the country’s position in international capital markets.
Speaking at the London Stock Exchange’s market-opening ceremony, Shehbaz highlighted Pakistan’s recent $3 billion dual-tranche Eurobond as evidence of renewed international investor confidence and described the transaction as an important step in rebuilding Pakistan’s connection with global capital markets.
“It is a very proud moment for all of us and an opportunity to rebuild Pakistan’s connection with the London Stock Exchange,” Shehbaz said.
Pakistan raised $3 billion through the Eurobond earlier this month, marking its largest-ever single international bond transaction. The issue comprised a $1.75 billion 5½-year bond carrying a 7.5 per cent coupon and a $1.25 billion 10-year bond with a 7.9 per cent coupon.
The transaction attracted nearly $6 billion in orders from institutional investors across global markets.
Shehbaz said the successful transaction reflected the government’s efforts to introduce structural reforms, digitise the economy and take measures aimed at putting the economy “back on the rails”.
“Our macroeconomic indicators are very promising and augur very well for the future,” he said.
The prime minister credited Finance Minister Muhammad Aurangzeb, other economic ministers, secretaries and government officials with contributing to improvements in Pakistan’s economic position.
Referring to the ongoing Gulf crisis, Shehbaz said Pakistan could have progressed more rapidly had the regional situation not deteriorated.
“If this Gulf crisis hadn’t erupted, we would have really taken off,” he said, adding that Pakistan, like other emerging economies, was dealing with the resulting challenges.
Shehbaz said Pakistan was also seeking to play a role as a peacemaker and mediator between the United States and Iran and expressed hope that diplomatic efforts would contribute to a safer situation.
He said the changing global environment had increased the importance of safety and security in investment decisions and argued that Pakistan could offer opportunities to international investors.
“Pakistan is a market where we can easily attract foreign investments,” he said, describing such investment as potentially profitable and mutually beneficial.
The prime minister said the government wanted to strengthen cooperation with the London Stock Exchange and international financial institutions to expand Pakistan’s access to global capital markets beyond sovereign borrowing.
He said Pakistan was interested not only in raising debt but also in attracting direct investment.
“We would certainly like to seek your guidance and advice how to further seek international financial markets to have a role in Pakistan, not in terms of only sovereign debts but investments,” he said.
Shehbaz also highlighted the government’s privatisation programme as an area where international investors could participate.
He said Pakistan had begun transferring state-owned enterprises towards private-sector management and referred to the recent privatisation of Pakistan International Airlines and First Women Bank.
The government was now moving towards offloading several other state-owned enterprises that, according to the prime minister, should be operated by the private sector.
Shehbaz said Pakistan could work closely with international financial institutions on the privatisation process and attract investment into the companies being transferred to private-sector management.
The government has been seeking to diversify Pakistan’s external financing sources after several years of heavy reliance on bilateral and multilateral lenders.
The latest $3 billion Eurobond followed a $750 million three-year Eurobond issued in April, when Pakistan returned to international bond markets after a four-year gap.
The Finance Ministry has said the latest transaction forms part of a broader strategy to diversify financing sources, extend maturities and reduce refinancing and rollover risks. The issuance also followed successive improvements in Pakistan’s sovereign credit ratings and renewed access to international capital markets.
Shehbaz said economic reforms, including digitisation and structural changes, were intended to create a stronger foundation for future growth.
He also said Pakistan needed to draw lessons from the current regional crisis and strengthen its ability to attract investment by providing markets that international investors considered safe.
During the ceremony, the prime minister invited London Stock Exchange Group Chief Executive David Schwimmer to visit Pakistan, saying Schwimmer was familiar with the country and could renew his “good old memories” of his younger days there.
Shehbaz asked Pakistan’s High Commissioner in London to extend a formal invitation to Schwimmer and expressed hope that his visit would lead to closer engagement between Pakistan and international financial markets.
The ceremony was held at the London Stock Exchange’s headquarters at Paternoster Square, where Schwimmer and senior officials received the prime minister.