Pakistan pulled off a ‘macroeconomic miracle’: report

Pakistan’s market has captured the attention of global investors amid its heightened tensions with India, US publication Barron’s reports. Over the past two years, the country has seen a “macroeconomic miracle”. While inflation was down from 40 per cent annually to near zero, Eurobonds maturing in 2031 rose from 40 cents on the dollar to 80 cents. The KSE-100 index has also tripled. The government reached a “stabilisation agreement” with the International Monetary Fund last September with the lender approving a $7 billion Extended Fund Facility (EFF). Over $2bn has already been disbursed. “Pakistan is a good story,” Genna Lozovsky, a chief investment officer at Sandglass Capital Management, was quoted by Barron’s as saying. “So good it’s not risky enough for us anymore.”’