Burger_King
FULL MEMBER
- Joined
- Jul 18, 2014
- Messages
- 162
- Reaction score
- 0
- Country
- Location
This is for those Pakistanis who have foreign currency in Roshan Digital Accounts. Be very, very careful.
Global markets are flashing red signal with regards to Pakistan's ability to service it's debt. Pakistan's government USD bonds are now trading at the same level as Sri Lankan USD bonds at the start of the year. This can be seen in the chart below.
White line shows the price history of USD Pak bond maturing in 2031 while blue line shows price of Sri Lankan bond maturing in 2030. These bonds were issued at 100. Pakistan bond was trading as a normal instrument until news of no confidence motion came out after which PKSTAN bonds began to trade like distressed bonds i.e. bonds of a country likely to default. Contrary to Miftah's boast, situation has gotten much worse over the last few days and these bonds currently offer a yield of 23% compared to yield of around 7-8% on RDA.
Why is this important for RDA account holders who have put their trust in Pakistan?
For three reasons (i) Unlike during the government of IK, Pakistan currently does not have market access so country cannot borrow from international markets and is reliant on goodwill of Americans and Chinese. That was the case for Sri Lanka as well and we know how that situation played out (ii) Yield of > 10% indicates a strong likelihood of default. (iii) CTBT/Dar/army combine has stolen hard earned dollars of Pakistanis before when in 1999, in the aftermath of nuclear explosion, government froze foreign currency accounts of Pakistanis which where the 1999 version of RDA. Freezing of accounts did not have an impact on ruling party which transferred its assets abroad prior to explosion.
Worryingly, today their is news in financial press that US wants Pakistan to renegotiate debt to China which essentially means US wants Pak to go the way of Sri Lanka. Normally, I would have backed Pak Army to help the country navigate through the crises but not anymore. I am dumbfounded by the stupidity of leadership of Pakistan's armed forces who cannot see the dangerous direction country is headed towards.
Goal of RCO was to make Pakistan another province of India or western version of BD. From the news today, it seems we are well on the way. Enjoy your last days of freedom.
Global markets are flashing red signal with regards to Pakistan's ability to service it's debt. Pakistan's government USD bonds are now trading at the same level as Sri Lankan USD bonds at the start of the year. This can be seen in the chart below.
White line shows the price history of USD Pak bond maturing in 2031 while blue line shows price of Sri Lankan bond maturing in 2030. These bonds were issued at 100. Pakistan bond was trading as a normal instrument until news of no confidence motion came out after which PKSTAN bonds began to trade like distressed bonds i.e. bonds of a country likely to default. Contrary to Miftah's boast, situation has gotten much worse over the last few days and these bonds currently offer a yield of 23% compared to yield of around 7-8% on RDA.
Why is this important for RDA account holders who have put their trust in Pakistan?
For three reasons (i) Unlike during the government of IK, Pakistan currently does not have market access so country cannot borrow from international markets and is reliant on goodwill of Americans and Chinese. That was the case for Sri Lanka as well and we know how that situation played out (ii) Yield of > 10% indicates a strong likelihood of default. (iii) CTBT/Dar/army combine has stolen hard earned dollars of Pakistanis before when in 1999, in the aftermath of nuclear explosion, government froze foreign currency accounts of Pakistanis which where the 1999 version of RDA. Freezing of accounts did not have an impact on ruling party which transferred its assets abroad prior to explosion.
Worryingly, today their is news in financial press that US wants Pakistan to renegotiate debt to China which essentially means US wants Pak to go the way of Sri Lanka. Normally, I would have backed Pak Army to help the country navigate through the crises but not anymore. I am dumbfounded by the stupidity of leadership of Pakistan's armed forces who cannot see the dangerous direction country is headed towards.
Goal of RCO was to make Pakistan another province of India or western version of BD. From the news today, it seems we are well on the way. Enjoy your last days of freedom.
