New York July 21 2022: Yields of Pakistan bonds and Sukuks floating in the international market drops 790 basis point as Finance Minister shares detail of $4 billion funding gap highlighted by IMF team.
“IMF was of the view $4 billion funding gap still existed which he said would be bridged by many sources as one of a friendly country had offered $1.2 oil financing, which would be finalized within a couple of days.” Says Pakistan Finance Minister Miftah Ismail
He added, “Likewise, another country would invest $1 to $2 billion in Pakistan Stock Exchange (PSX) whereas another country had promised $200 to $300 million gas on deferred payments.”
“In addition, he said, another friendly country offered $2 billion deposits and yet another friendly country would provide 2 billion SDRS (more than $2 billion)”, he says.
On Tuesday Pakistan International paper yields top 50% as Fitch revises Pakistan outlook to negative from stable, according to data available at Reuters. Ratings agency Fitch on Tuesday revised its outlook on Pakistan to negative from stable, citing deterioration in country’s external liquidity position and financing conditions since early 2022. Fitch affirmed Pakistan’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B-‘.
Yields of both Pakistan International Sukuk and Pakistan International Bond having maturity of 5th December 2022 and 15th April 2024 drops more than 700 basis points. The former trading at Yield to maturity (YTM) of 43.4% against peak of 51.3% and the later at YTM of 43.3% against peak of 50.6%.
Pakistan Government International Bonds with maturity of 30th September 2025, 8th April 2026 and 5th December 2027 are trading at 30.52%, 26.1% and 22.1% against peak of 35.6%, 29.7% and 24.3% touched on tuesday.
