Pakistan’s first prime minister to open LSE session; highlights economic reforms, improved macroeconomic indicators and opportunities for international investment
LONDON: Prime Minister Muhammad Shehbaz Sharif on Tuesday became the first Pakistani prime minister to open the trading session of the London Stock Exchange (LSE) and formally inaugurated Pakistan’s landmark US$3 billion dual-tranche sovereign Eurobond.
Addressing the ceremony at the LSE headquarters in Paternoster Square, the prime minister highlighted Pakistan’s potential to attract foreign investment and said the government had worked extensively in recent years to strengthen the country’s economy.
“As I speak, we have strengthened our macroeconomic indicators, which are very promising and augur very well for the future,” he said.
The prime minister said the successful Eurobond transaction reflected the efforts of the finance ministry and economic team, including structural reforms, digitisation of the economy and measures taken to place the national economy on a stronger footing.
Pakistan raised US$3 billion through the dual-tranche Eurobond earlier this month, attracting nearly US$6 billion in orders from a broad and geographically diversified institutional investor base. The transaction comprised a 5.5-year tranche and a 10-year tranche and was described by the Ministry of Finance as Pakistan’s largest-ever international capital-market transaction.
The prime minister also highlighted the government’s privatisation programme, referring to the privatisation of Pakistan International Airlines and First Women Bank, and said the government was moving towards transferring other state-owned enterprises to private-sector management.
He said Pakistan and the United Kingdom could work closely in the area of privatisation and investment, while inviting greater participation by international financial institutions and investors in Pakistan.
Referring to recent regional developments, Prime Minister Shehbaz Sharif said Pakistan was managing the challenges posed by the Gulf crisis while also playing a role in promoting dialogue and peace in the region.
He also commended Finance Minister Muhammad Aurangzeb and other economic ministers, secretaries and government officials for their efforts in strengthening the country’s economy.
Addressing London Stock Exchange Group Chief Executive Officer David Schwimmer, the prime minister said Pakistan would welcome his guidance on further engaging international financial markets, not only for sovereign financing but also for investment opportunities in the country.
He described his participation in the LSE market-opening ceremony as a significant occasion and a step towards strengthening Pakistan’s engagement with the London Stock Exchange.
The prime minister also invited David Schwimmer to visit Pakistan.
The ceremony was attended by LSE 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 senior British officials.
The visit highlighted Pakistan’s renewed access to international capital markets. The US$3 billion Eurobond was the first issuance under Pakistan’s renewed Global Medium-Term Note Programme and followed the country’s inaugural Panda Bond and successive sovereign credit-rating upgrades.
The transaction forms part of Pakistan’s broader debt-management strategy to diversify financing sources, extend maturities and reduce refinancing and rollover risks.
Earlier, upon his arrival at the London Stock Exchange, Prime Minister Shehbaz Sharif and his delegation were received by David Schwimmer and senior officials of the London Stock Exchange Group.
