Pakistan’s debt strains remain but its bonds are now nearly double the level they were in late May due to optimism around support from the International Monetary Fund (IMF).

The 2036 dollar-denominated bond rallied the most, gaining 2.4 cents to trade at 57.76 cents on the dollar. The 2025 maturity gained just under 2 cents, lifting it to 82.37 cents on the dollar, its strongest level since May 2022.

The latest leg of the rally, which began last month, was sparked by hopes that an election scheduled for February will provide political stability and enable some economic certainty.

An agreement last week to unlock $700 million of IMF funding has also buoyed the country’s bonds.