LONDON: Pakistan’s sovereign dollar bonds extended their rally on Friday with some bonds trading at the highest since June 2022, Tradeweb data showed, after the International Monetary Fund (IMF) approved a loan disbursement.

Pakistan’s bonds had already rallied sharply in the previous session, with all of the issuance rising. But the 2026 rose the most, adding as much as 1.44 cents to trade at 71.49 cents on the dollar - firmly back above the 70 cent threshold below which debt is seen as distressed.

IMF Executive Board completes 1st review under SBA: finance ministry

Late on Thursday, the IMF board approved a roughly $700 million loan for Pakistan under its $3 billion bailout. A Fund official said there were “tentative signs of activity picking-up and external pressures easing” in the debt-laden Southeast Asian nation.