Pakistan dollar bonds jump after parliament approves revised budget

Pakistan’s sovereign dollar-denominated bonds jumped on Monday after the country’s parliament approved a revised budget in a last-ditch bid to clinch a deal with the International Monetary Fund (IMF), Reuters reported.
Shorter-dated securities saw the biggest gains, with the 2024 and 2025 bonds adding as much as 1.7 cents, Tradeweb data showed. However, they are still at deeply distressed levels of just over 51 cents and 40 cents, respectively.
There are five days to go before the $6.5 billion Extended Fund Facility (EFF), agreed in 2019, expires on June 30. The IMF has to review whether to release some of the $2.5 billion still pending to Pakistan before then. The tranche has been stalled since November.