LONDON: Pakistan’s sovereign dollar-denominated bonds fell as much as 8 cents to hit fresh record lows after new finance minister Ishaq Dar on Wednesday vowed to bring down interest rates and fight inflation.

Shorter-dated issues suffered the biggest decline with the 2024 bond being bid at 40.2 cents on the dollar, according to Tradeweb data. Bonds due in 2025 and 2027 fell just over 4 cents while longer-dated maturities received bids at just over 36.6 cents in the dollar.

Inflation in Pakistan is exceeding 27%.

Dar also called the rupee currency undervalued and promising a strong response to resolve the South Asian nation’s worst economic crisis. Long-term worries about Pakistan’s finances have been compounded over the last month by devastating monsoon floods.