Pakistan 92% more likely to default on its debt - CDS rate as of 21 Nov, 2022

[Genghis khan1]

the Establishment ball holders. Who kept defending Bajwa

They worry about their retirement and benefits. Bajwa has the power to take it away. Nobody want to lose rozi roti n free plots.

 

[Clutch]

View attachment 899284

Pakistan’s chances of defaulting on its debt have reached alarming new levels, with the cost of ‘insuring’ the country’s sovereign debt hitting another all-time high in devastating fashion.

View attachment 899285​

According to data by Arif Habib Limited (AHL), Pakistan’s benchmark 5-year Credit Default Swap (CDS) spiked on 18 November by a whopping 1,253 basis points to 92.53 percent. The instrument has widened by over 12.53 percentage points in a single day and shows that investors are not willing to take on Pakistan’s default risk at a price level inferior to 92 percent.

The spike coincides with the State Bank of Pakistan’s (SBP) declining foreign exchange reserves, which remained less than $8 billion as of November 11, 2022, according to data released last week.


Dar on Saturday dispelled rumors of an impending default, stating that Pakistan would not seek an extension in the payment of a $1 billion Sukuk bond due in December. He asserted that Pakistan never defaulted even on a small amount except in 1971, and the upcoming bond will be paid in full without any delays.

He also lambasted his political adversaries for allegedly twisting Pakistan’s perceived default risk indicator. He said the rumors about the CDS were spread on a political basis and should be overlooked for the sake of the country. While the minister claimed that the marker was meaningless and that international bonds are a very small instrument, money markets are taking it the other way around.

Pertinently, Fitch downgraded Pakistan’s long-term issuer default rating to CCC+ from B-, while Moody’s downgraded the country’s issuer and senior unsecured debt ratings to Caa1 from B3. Both cited liquidity risks in the aftermath of devastating floods as a major reason for their downgrades, while also mentioning depleting reserves.


The ongoing bond market reaction has heightened fears of a default, compounded by recent floods estimated to cost over $30 billion in damages. For a nation that has not even defaulted yet, the maddening uncertainty in its external liquidity and funding conditions isn’t helping.

The yield (rate of return) on the 5-year Third Pakistan International Sukuk is currently around 98 percent. It was less than 10 percent in January 2020.

As of 18 November, the yield on the five-year third Pakistan International Sukuk Company Limited increased by 568 basis points to 98.96 percent. The yield on a 10-year Eurobond maturing on April 15, 2024, increased from almost 62.37 percent to 63.78 percent. The yield on the 10-year Eurobond maturing on September 30, 2025, increased from 44.73 percent to 45.52 percent.

Pakistan is Now Over 92% More Likely to Default on its Debt

Pakistan's chances of defaulting on its debt have reached alarming new levels, with the cost of 'insuring' the country's sovereign debt hitting another

propakistani.pk

The best thing to happen to Pakistan economically is this default and total meltdown....


From the ashes a new Pakistan will be built ... But it will take a revolution that eliminates the corrupt system and elite capture....

 

[Mugen]

Sometimes we learn the lesson the hard way. We getting what we deserve ... a corrupt to the core elite.

Still most Pakistanis are not doing anything about it.

 

[Imran Khan]

بے شک ہو جائے باجوے کی بیوی کا اکاؤئنٹ ہی ڈالر میں ہے

 

[SecularNationalist]

Bajwa was going out of his way to hug Navjot Singh Sidhu but never saw him hugging an average Pakistani. He even ask IK to spend money on kartar pur and let Indians in openly. This SoB is the greatest mole ever placed in the history of any country.

Not really.
I equally hate bajwa but the decision to open kartarpur by imran government was a right one.

 

[ziaulislam]

View attachment 899284

Pakistan’s chances of defaulting on its debt have reached alarming new levels, with the cost of ‘insuring’ the country’s sovereign debt hitting another all-time high in devastating fashion.

View attachment 899285​

According to data by Arif Habib Limited (AHL), Pakistan’s benchmark 5-year Credit Default Swap (CDS) spiked on 18 November by a whopping 1,253 basis points to 92.53 percent. The instrument has widened by over 12.53 percentage points in a single day and shows that investors are not willing to take on Pakistan’s default risk at a price level inferior to 92 percent.

The spike coincides with the State Bank of Pakistan’s (SBP) declining foreign exchange reserves, which remained less than $8 billion as of November 11, 2022, according to data released last week.


Dar on Saturday dispelled rumors of an impending default, stating that Pakistan would not seek an extension in the payment of a $1 billion Sukuk bond due in December. He asserted that Pakistan never defaulted even on a small amount except in 1971, and the upcoming bond will be paid in full without any delays.

He also lambasted his political adversaries for allegedly twisting Pakistan’s perceived default risk indicator. He said the rumors about the CDS were spread on a political basis and should be overlooked for the sake of the country. While the minister claimed that the marker was meaningless and that international bonds are a very small instrument, money markets are taking it the other way around.

Pertinently, Fitch downgraded Pakistan’s long-term issuer default rating to CCC+ from B-, while Moody’s downgraded the country’s issuer and senior unsecured debt ratings to Caa1 from B3. Both cited liquidity risks in the aftermath of devastating floods as a major reason for their downgrades, while also mentioning depleting reserves.


The ongoing bond market reaction has heightened fears of a default, compounded by recent floods estimated to cost over $30 billion in damages. For a nation that has not even defaulted yet, the maddening uncertainty in its external liquidity and funding conditions isn’t helping.

The yield (rate of return) on the 5-year Third Pakistan International Sukuk is currently around 98 percent. It was less than 10 percent in January 2020.

As of 18 November, the yield on the five-year third Pakistan International Sukuk Company Limited increased by 568 basis points to 98.96 percent. The yield on a 10-year Eurobond maturing on April 15, 2024, increased from almost 62.37 percent to 63.78 percent. The yield on the 10-year Eurobond maturing on September 30, 2025, increased from 44.73 percent to 45.52 percent.

Pakistan is Now Over 92% More Likely to Default on its Debt

Pakistan's chances of defaulting on its debt have reached alarming new levels, with the cost of 'insuring' the country's sovereign debt hitting another

propakistani.pk

Mashallah
We are at Pinnacle of success..just 8 point short.

God bless the supreme leader.

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[nangyale]

Guys, do you even respect the shuhada?

Does this Army respect the shuhada it killed for money and to hide it's corruption?

 

[Genghis khan1]

Not really.
I equally hate bajwa but the decision to open kartarpur by imran government was a right one.

But it wasn’t IK decision or NS. Bajwa was behind it. He informed sidhu about it while sidhu was in Pakistan for IK PM oath taking ceremony.

 

[HttpError]

Guys, do you even respect the shuhada?

As long as boot lickers like you are alive, I am certain Pakistan can't progress.

 

[Laozi]

Some people say a society gets the leaders they deserve. I say this is false, because in Pakistans case the real leaders, the ones who make the decisions, are not chosen by the people. It is these powerful people who loot and plunder and systemically destroy all institutions in order to protect themselves. This trickles down from top to bottom and what you get is Pakistan. A country full of fraud and corruption.

Army is the binding force of the state of Pakistan for decades. It has commanded the undying respect of your people. Pakistanis almost worshipped its army and got ruled by it either directly or through its proxies.

BUT, IK is destroying this most essential institution of your country without realizing the consequences of his actions.

No doubt that IK is not corrupt, but the problem is that one cannot say the same for his team.

The problem which no one has an answer is: What is gonna happen when Imran won't be there.

There is hardly any leader other than IK in PTI who is acceptable in all states.

IK is a man in hurry to be in power at the cost of disintegrating powerful establishment. He is a leader of masses but lacks visionary policy to guide the country towards desired goal.

 

[MultaniGuy]

View attachment 899284

Pakistan’s chances of defaulting on its debt have reached alarming new levels, with the cost of ‘insuring’ the country’s sovereign debt hitting another all-time high in devastating fashion.

View attachment 899285​

According to data by Arif Habib Limited (AHL), Pakistan’s benchmark 5-year Credit Default Swap (CDS) spiked on 18 November by a whopping 1,253 basis points to 92.53 percent. The instrument has widened by over 12.53 percentage points in a single day and shows that investors are not willing to take on Pakistan’s default risk at a price level inferior to 92 percent.

The spike coincides with the State Bank of Pakistan’s (SBP) declining foreign exchange reserves, which remained less than $8 billion as of November 11, 2022, according to data released last week.


Dar on Saturday dispelled rumors of an impending default, stating that Pakistan would not seek an extension in the payment of a $1 billion Sukuk bond due in December. He asserted that Pakistan never defaulted even on a small amount except in 1971, and the upcoming bond will be paid in full without any delays.

He also lambasted his political adversaries for allegedly twisting Pakistan’s perceived default risk indicator. He said the rumors about the CDS were spread on a political basis and should be overlooked for the sake of the country. While the minister claimed that the marker was meaningless and that international bonds are a very small instrument, money markets are taking it the other way around.

Pertinently, Fitch downgraded Pakistan’s long-term issuer default rating to CCC+ from B-, while Moody’s downgraded the country’s issuer and senior unsecured debt ratings to Caa1 from B3. Both cited liquidity risks in the aftermath of devastating floods as a major reason for their downgrades, while also mentioning depleting reserves.


The ongoing bond market reaction has heightened fears of a default, compounded by recent floods estimated to cost over $30 billion in damages. For a nation that has not even defaulted yet, the maddening uncertainty in its external liquidity and funding conditions isn’t helping.

The yield (rate of return) on the 5-year Third Pakistan International Sukuk is currently around 98 percent. It was less than 10 percent in January 2020.

As of 18 November, the yield on the five-year third Pakistan International Sukuk Company Limited increased by 568 basis points to 98.96 percent. The yield on a 10-year Eurobond maturing on April 15, 2024, increased from almost 62.37 percent to 63.78 percent. The yield on the 10-year Eurobond maturing on September 30, 2025, increased from 44.73 percent to 45.52 percent.

Pakistan is Now Over 92% More Likely to Default on its Debt

Pakistan's chances of defaulting on its debt have reached alarming new levels, with the cost of 'insuring' the country's sovereign debt hitting another

propakistani.pk

We could ask China to bail us out, and let them control Gwadar port for 50 years. I know Pakistan can make deals like that.

We can make arrangements like that.

 

[WoKonTha]

Army is the binding force of the state of Pakistan for decades. It has commanded the undying respect of your people. Pakistanis almost worshipped its army and got ruled by it either directly or through its proxies.

BUT, IK is destroying this most essential institution of your country without realizing the consequences of his actions.

No doubt that IK is not corrupt, but the problem is that one cannot say the same for his team.

The problem which no one has an answer is: What is gonna happen when Imran won't be there.

There is hardly any leader other than IK in PTI who is acceptable in all states.

IK is a man in hurry to be in power at the cost of disintegrating powerful establishment. He is a leader of masses but lacks visionary policy to guide the country towards desired goal.

Jab Indians Pakistan army ke haq main qaseeday likhna shuru kr dein, thats a telltale sign of how rotten this institution is and how detrimental it is to Pakistan's future.

 

[epebble]

Army is the binding force of the state of Pakistan for decades. It has commanded the undying respect of your people. Pakistanis almost worshipped its army and got ruled by it either directly or through its proxies.

You are describing this as a feature. But most Pakistanis are recognizing this is a bug. This idolatry of military to the exclusion of everything else means the populace is getting disoriented just by the military declaring it wants to be apolitical, as in 180 other nations on the planet. So, a simple act of No Confidence Motion, routine in Parliamentary democracies, is causing political, social and economic paralysis; with some wondering if the State will even survive. This is like saying I got hiccups and I may die. Earlier the citizenry is disabused of this superstition, it is better for the health of the nation.

 

[SD 10]

only one entity is responsible for it...their desire to have the absolute power has destroyed the country and only they are to be blamed for all this!!!

 

[Ghazwa-e-Hind]

ex-finance minister Shaukat Tarin speaks about the grim economic situation caused by imported govt/handlers