Pakistan faces another economic setback

Pakistan faces another economic setback

Pakistan’s dollar bonds fell on Friday after Prime Minister Shehbaz Sharif made an urgent appeal for debt relief from the rich countries in the wake of one of the worst floods in the country’s history.

Pakistan’s 5.625 percent 2022 dollar bond, set to mature in December, dropped 11 cents on the dollar. Similarly, the 7.375 percent 2031 dollar bond going down by 7 cents on the dollar, Bloomberg said in a report link .

Financial Times also reported today that a United Nations development agency has urged the cash-strapped country to restructure its debt.

Pakistan is not the only country struggling to service its heavy debt, a number of other emerging and frontier-market nations are also struggling as their currencies weaken against the US dollar, and borrowing costs soar.

Pakistan’s problems have been compounded by the devastating floods that have affected over 33 million people. About 81 districts in Sindh, Punjab, Balochistan, and Khyber Pakhtunkhwa have been officially notified as ‘calamity hit’ with over 1,600 dead since June 14th, according to the latest data released by the National Disaster Management Authority (NDMA).