Pakistan Default Risk Soars, Currency Sinks on Political Turmoil
- Nation’s participation in IMF plan may be in doubt: Moody’s
- Pakistan’s dollar bonds have already slumped 5% this year
People watch screens showing a speech by Imran Khan after being elected in 2018.
Photographer: Asim Hafeez/BloombergThis article is for subscribers only.
Pakistan’s political upheaval is adding to a surge in the nation’s default risk and triggering off further losses in the nation’s bonds and currency.
A no-confidence motion against Prime Minister Imran Khan scheduled for Sunday threatens to further destabilize the economy and jeopardize a crucial funding package being negotiated with the International Monetary Fund. Investors are concerned the political struggle will distract the authorities from focusing on the yawning current-account deficit.