ADB sells second Pak rupee-linked Karakoram bonds

The Asian Development Bank (ADB) has sold the second Pak rupee linked Karakoram bonds priced at $10 million, reported 24NewsHD TV channel on Friday.

According to an ADB statement, the Karakoram bonds issued for five years brought in Rs1.60 billion to Pakistan. “Building on the strong first outing, SCB placed it with two European investors with proceeds invested into Pakistan government securities,” said ADB. 

It is pertinent to mention that a Karakoram bond is an offshore bond denominated in Pakistani rupees and settled in US dollar, listed on a major stock exchange and settled through an international central securities depository.

Back in November, ADB has raised Rs1.83 billion ($11.4 million) in the first issue of local currency Karakoram bonds.

Earlier ADB said it endorsed a new five-year country partnership strategy (CPS) to help restore economic stability and growth in Pakistan, enhance people’s well-being, create jobs, and expand economic opportunities as the country works to overcome the coronavirus disease (Covid-19) pandemic.

The ADB said that the pandemic had interrupted the macroeconomic recovery in Pakistan, resulting in a sharp contraction in growth, a rise in public expenditures, and a loosening of monetary policy to mitigate the health and economic impacts.

“As with many countries in the region, Covid-19 has affected Pakistan, revealing the extent to which the population is exposed to economic and social vulnerabilities,” said ADB Director General for Central and West Asia Eugene Zhukov. “The new CPS 2021–2025 will build greater resilience of the population and help tackle Pakistan’s persistent structural challenges,” he added.