Islamabad, May 12, 2025: Pakistan’s sovereign bonds climbed sharply on Monday, following a weekend ceasefire agreement with India and the IMF’s approval of a fresh loan release, according to a report by Reuters.
Investor confidence improved after tensions between the two neighbours reduced, and the Executive Board of the International Monetary Fund (IMF) cleared the release of around $2.3 billion in support to Pakistan.
READ MORE: Pakistan Bonds Slide as India Tensions Grow
Tradeweb data showed the 2036 bond leading the recovery, climbing by 4.46 cents to trade at 77.04 cents on the dollar.
The 2031 bond also made notable progress, rising by nearly 4 cents to reach 83 cents on the dollar.
The benchmark KSE-100 Index jumped nearly 10,000 points, a 9% surge reflecting renewed investor confidence.
READ MORE: Pakistan Launches Digital Prize Bonds – Key Details Inside
Strong buying was witnessed across the board, especially in banking and energy sectors. Major stocks including HUBCO, MARI, OGDC, PPL, POL, PSO, NRL, SNGPL, SSGC, HBL, MCB, UBL, and MEBL all traded in the green, helping drive the market’s strong recovery.
The bond rally followed a ceasefire agreement on Saturday after a series of border clashes.
Military leaders from both countries are expected to meet today to discuss further steps to maintain peace and stability in the region.
