LONDON- Pakistan's sovereign dollar bonds rose nearly 3 cents on Monday after the country's parliament elected Shehbaz Sharif as prime minister after a week-long constitutional crisis that ousted his predecessor Imran Khan.

Longer-dated bonds enjoyed the biggest gains with the 2051 bond up as much as 2.88 cents in the dollar to trade at 65.885 cents, Tradeweb data showed. The 2031 issue gained 1.9 cents to trade at 70.25 cents.

Analysts said the bonds were benefiting from a combination of factors, including last week's 250 basis-point emergency interest rate hike and investors' view of Sharif's PML-N party as business friendly and more willing to engage with the International Monetary Fund.

"The best long-term combination for investors would be the PTI’s governance reformist agenda, with a foreign policy balanced between China and the U.S., and a parliamentary majority large enough to make unpopular economic remedies, such as scrapping subsidies and tax loopholes for privileged sectors," said Hasnain Malik at Tellimer.

"We are many steps away from that at this point.”

However, the bonds still trade at deeply distressed levels.

Legislators from Khan's Tehreek-e-Insaf (PTI) party resigned en masse from the lower house of parliament, and fresh by-elections will be needed in over a hundred seats.

The legislators protested against the formation of a new government by Khan's political opponents after he was ousted in a no-confidence vote by the same assembly in the early hours of Sunday.

(Reporting by Karin Strohecker and Jorgelina do Rosario; editing by Sujata Rao)