INSUBCONTINENT EXCLUSIVE:
Shareholders are bracing for a prospective default by Pakistan as the beleaguered country deals with billions of dollars in financial
obligation payments that it will struggle to make good on without a bailout from the International Monetary Fund or rollovers from bilateral
creditors.
The countrys dollar bonds slid to the lowest level because November on Thursday as investors weigh its ability to honor $7
billion of payments in the coming months, including a Chinese loan of $2 billion due in March, according to Fitch Ratings
The rupee slumped 3.2% to 275 per dollar.
Pakistan was devalued deeper into scrap by Moodys Investors Service this week as the country faces
its worst recession in decades, with foreign reserves plummeting and inflation soaring to a record high
Authorities in Pakistan are depending on a bailout loan from the IMF to stave off a default, which has remained evasive.
We are managing
the risks now already, such that in the event that occurs we shouldnt be impacted dramatically, said Johnny Chen, fund supervisor at
William Blair Investment in Singapore, who has actually cut direct exposure to Pakistan debt just recently.
Pakistans 8.25% bond due April
next year was indicated 0.8 cents lower to 51.1 cents on the dollar, down for a third straight day
The nations external funding requirements are estimated to be around $11 billion for the ending June, including $7 billion in external
financial obligation payments, Moodys said in a note Wednesday.
Meanwhile, Pakistan got a $700 million loan facility from China Development
Bank in February, stated Finance Minister Ishaq Dar
And, Premier Li Keqiang informed the head of the IMF that China is open to participating in multilateral efforts to help greatly indebted
countries in an useful way, China Central Television reported.
Prime Minister Shehbaz Sharif this week said an agreement with the IMF
might be reached within the next few days
