Islamabad July 14 2022: Pakistan’s dollar bonds maturing in 2031 and
2051 are due for a bounce of at least about five points after the IMF deal, but there’s limited upside beyond that considering fragile EM sentiment and the nation’s weak fiscal and external
position, Nicholas Yap says in a note.
Another concern is elevated political uncertainty with current ruling coalition comprising multiple parties with divergent interests, which may complicate the implementation of IMF-
mandated reforms, especially with elections due by mid-2023, according to Yap, head of Asia credit desk analysts at Nomura
Nomura is overweight Pakistan’s 2022 Sukuk, which has a high likelihood to be redeemed at par in December. It’s currently
trading near 91
The IMF program “should alleviate fears of a near-term default scenario and unlock funding from other multilateral lenders,”
the note said
