KARACHI – Rating agency Moody’s has warned Pakistan over the deterioratingeconomic conditions for at least two upcoming years.
Pakistan is likely to face high refinancing cost for its internationalbonds maturing over the next two years that would increase the country’sdebt burden, ratings agency Moody’s said on Wednesday.
Moody’s Investors Service said international bonds issued by frontiermarket governments in Asia Pacific and Africa are coming due over the nexttwo years in a tighter refinancing environment.
Pakistan tops the countries that “will prove the most exposed to morecostly debt financing as (its) international sovereign bonds mature in 2019and 2020,” Moody’s said in a report titled ‘Sovereigns — Frontier markets:Maturing international bonds contribute to exposure to financing risks’.
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“If the tighter financing conditions are pronounced and sustained, such asituation would weaken the debt affordability for these countries, andraise their debt burden, especially if local currencies depreciate,” theratings agency said.
