Pakistan’s 2024 bonds have fallen for the sixth consecutive day, accordingto investors tracking developing-country dollar-denominated bonds,Bloomberg reported on Wednesday.
This drop is being attributed to ongoing clashes between supporters offormer Prime Minister Imran Khan and the police. Pertinently, the debt duein 2024 fell by 5 cents to 46 cents on the dollar.
A high-profile investment banker told ProPakistani the bond marketsentiment is rated junk for Pakistani maturities following the recent junkclassification of Pakistan’s bonds by Moody’s Investors Service. He saidbond prices will maintain a slump if the political situation worsens in thecoming days.
Other maturities, such as those due in 2025, 2026, 2027, and 2029, werealso weakening. The country’s sovereign dollar-denominated bonds slumped byat least 5 cents with the country’s 2024, 2025, 2026, 2027, and 2029 dollarbonds trading at 46.1 cents, 41.8 cents, 39.2 cents, and 38.2 cents on thedollar, respectively.
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Pakistan’s political unrest has made investors wary, causing bond prices tofall. The country’s situation remains uncertain, with investors keeping aclose eye on any further developments that may have an impact on thecountry’s financial stability.