Shehbaz becomes first Pakistani PM to open LSE trading session
Prime Minister Shehbaz Sharif on Tuesday became the first Pakistani prime minister to open a trading session at the London Stock Exchange (LSE), where he also formally inaugurated Pakistan’s landmark $3 billion dual-tranche sovereign Eurobond.
Addressing the ceremony at the LSE headquarters in Paternoster Square, PM Shehbaz said Pakistan had strengthened its macroeconomic indicators and was seeking to attract foreign investment.
“We have strengthened our macroeconomic indicators, which are very promising and augur very well for the future,” he said.
The ceremony was attended by London Stock Exchange Group CEO David Schwimmer, Finance Minister Muhammad Aurangzeb, Adviser to the Prime Minister on Privatisation Muhammad Ali, Pakistan High Commissioner to the UK Dr Mohammad Faisal, members of the Pakistani delegation and British officials.
Pakistan returns to global capital markets
The prime minister highlighted the $3 billion Eurobond as evidence of the government’s efforts to stabilise the economy and undertake structural reforms.
He credited Aurangzeb, economic ministries, secretaries and government officials for their role in arranging the transaction and improving Pakistan’s access to international financial markets.
Pakistan raised $3 billion through the bond in September, making it the country’s largest-ever international capital market transaction in a single deal. The issue attracted nearly $6 billion in orders from institutional investors across global markets.
The transaction comprised a $1.75 billion, 5.5-year tranche carrying a 7.5% coupon and a $1.25 billion, 10-year tranche with a 7.9% coupon. It was the first issuance under Pakistan’s renewed Global Medium-Term Note (GMTN) programme.
The government has said the transaction is part of a broader debt-management strategy aimed at diversifying financing sources, extending maturities and reducing refinancing and rollover risks.
PM highlights privatisation drive
Shehbaz also highlighted the government’s privatisation programme, citing the sale of Pakistan International Airlines and First Women Bank.
He said the government was moving towards offloading more state-owned enterprises and argued that such entities should increasingly be operated by the private sector.
The prime minister said Pakistan and the UK could work closely in this area and invited Schwimmer to visit Pakistan.
He also sought guidance from the LSE chief on expanding Pakistan’s engagement with international financial markets beyond sovereign borrowing and attracting direct investment.
Shehbaz links Gulf crisis to investment
Referring to the ongoing Gulf crisis, Shehbaz said Pakistan was facing the challenge alongside other emerging economies while also playing a role in efforts to mediate between the United States and Iran.
“If the Gulf crisis hadn’t erupted, the country would have really taken off,” he said.
He said the crisis had also highlighted the need to draw lessons about the changing priorities of international investors, particularly their assessment of market and investment risks.
The prime minister said Pakistan would continue working to strengthen its economy while seeking greater integration with global financial markets.
Earlier, Shehbaz and his delegation were received by Schwimmer and senior LSE officials upon arrival at the exchange.