Pakistani Economic Stress Watch

The Strategic Issues & International Relations Forum is a venue to discuss issues pertaining to India's security environment, her strategic outlook on global affairs and as well as the effect of international relations in the Indian Subcontinent. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

CPEC should be dead in the water after this move from TSP. Especially if India and China can keep the differences in cold storage for now.
Vips
BRF Oldie
Posts: 4699
Joined: 14 Apr 2017 18:23

Re: Pakistani Economic Stress Watch

Post by Vips »

Moody's cuts Pakistan's rating to Caa1.

Moody's cut Pakistan's sovereign credit rating on Thursday by one notch to Caa1 from B3, citing increased government liquidity and external vulnerability risks, following the devastating floods that hit the country earlier this year.

The floods, caused by abnormal monsoon rains and glacial melt, have submerged huge swathes of the South Asian country and killed nearly 1,700 people, most of them women and children.

The floods will also raise Pakistan's external financing needs, raising the risks of a balance of payments crisis, according to the rating agency.

Moody's outlook on Pakistan remained unchanged at negative.
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

Alarm bells ring as foreign exchange reserves fall below $8bn
KARACHI: In line with the dominant trend over the last several weeks, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) once again declined by 1.32% falling below the psychological level of ?$8 billion,

On September 30, the foreign currency reserves held by the SBP were recorded at $7,899.8 million, down $106 million compared with $8,005.9 on September 23, data released by SBP showed on Thursday.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,588.8 million.

Net reserves held by banks amounted to $5,689 million. The central bank cited external debt repayment, including interest payments on Eurobonds, as a major reason behind the decline.

With the current foreign exchange reserves position, Pakistan has an import cover of fewer than 1.5 months.
Manish_P
BRF Oldie
Posts: 5383
Joined: 25 Mar 2010 17:34

Re: Pakistani Economic Stress Watch

Post by Manish_P »

Take this you Infidels-Joos-Kufrs

Yawn - Will give befitting reply to Moody’s if downgrade not reversed: Dar
Finance Minister Ishaq Dar warned Moody’s Investor Service on Friday that he would give a “befitting” reply in a meeting with its officials next week if the agency did not reverse the downgrade of Pakistan’s sovereign credit rating.

Talking outside an accountability person in Islamabad today, Dar said he had spoken to the agency’s officials and told them that they “should not have done it”.

Moody’s should have consulted Pakistan prior to the downgrade :lol: , the finance minister said, adding that there was “no cause for worry” as rating agency Fitch had also downgraded the United Kingdom earlier this week :mrgreen: .
arvin
BRFite
Posts: 672
Joined: 17 Aug 2016 21:26

Re: Pakistani Economic Stress Watch

Post by arvin »

Paki's predicament: Neither will be reversed.

Modi's CAA
Moody's Caa1
Vadivel
BRFite
Posts: 435
Joined: 07 Feb 2003 12:31
Location: Chennai
Contact:

Re: Pakistani Economic Stress Watch

Post by Vadivel »

arvin wrote:Paki's predicament: Neither will be reversed.

Modi's CAA
Moody's Caa1
:rotfl:
Neela
BRF Oldie
Posts: 4102
Joined: 30 Jul 2004 15:05
Location: Spectator in the dossier diplomacy tennis match

Re: Pakistani Economic Stress Watch

Post by Neela »

Dont really care about Fitch / Moody and their ratings. But still CAA1 seems to be a trap for investors....you know Pakis and their madrassa math....they are probably much lower in reality

Image
g.sarkar
BRF Oldie
Posts: 4382
Joined: 09 Jul 2005 12:22
Location: MERCED, California

Re: Pakistani Economic Stress Watch

Post by g.sarkar »

https://www.thenationalnews.com/busines ... f-economy/
Moody's slashes Pakistan's rating deeper into junk over sharp deterioration of economy
The government's preliminary estimates put the economic cost of floods at about $30bn, equivalent to 10% of output
Massoud A Derhally, Oct 07, 2022

Moody's Investors Service downgraded Pakistan's sovereign rating deeper into junk territory and maintained a negative outlook on the country owing to the sharp deterioration of its economy as a result of the effects of recent floods.
The country's local and foreign currency issuer and senior unsecured debt ratings were cut to Caa1 from B3, Moody's said in a statement late on Thursday. Such a rating makes it more difficult to access capital markets and raise financing.
"The decision to downgrade the ratings ... is driven by increased government liquidity and external vulnerability risks and higher debt sustainability risks, in the aftermath of devastating floods that hit the country since June 2022," Moody's said.
"The floods have exacerbated Pakistan's liquidity and external credit weaknesses and vastly increase social spending needs, while government revenue is severely hit. Debt affordability, a long-standing credit weakness for Pakistan, will remain extremely weak for the foreseeable future."
Rising prices globally and delayed policy action by Pakistan's government hit the country’s finances, leading to significant exchange-rate depreciation, a surge in inflation and an erosion of its foreign currency reserves. Torrential rain and flooding that submerged one third of the country and killed more than 1,000 people have piled pressure on its faltering economy.
Before the flooding, a weakening economy forced the government to raise fuel prices by more than 20 per cent this year and the country has struggled to recover from floods. The economic outlook in the near and medium term has deteriorated sharply as a result of the floods. The government's preliminary estimates put the economic cost of the floods at about $30 billion, equivalent to 10 per cent of gross domestic product.
In August, the International Monetary Fund released about $1.1bn to Pakistan as part of its seventh and eighth reviews of the country's bail-out programme, helping it avoid a default crisis similar to Sri Lanka's. The fund also agreed to extend the programme by a year to the end of June 2023 and increase the total amount of funding by about $940 million.
The release of funds brings the total support extended by the Washington-based lender under the programme to about $6.5bn.
The country's IMF loan programme agreed in 2019 had stalled under the government of former prime minister Imran Khan, which backtracked on subsidy agreements and failed to improve tax collection, but Pakistan and the fund resumed a staff-level agreement in July to resume the funding facility.
"Pakistan will remain highly reliant on financing from multilateral partners and other official sector creditors to meet its debt payments, in the absence of access to market financing at affordable costs," Moody's said.
......
Gautam
vimal
BRFite
Posts: 1902
Joined: 27 Jul 2017 10:32

Re: Pakistani Economic Stress Watch

Post by vimal »

It is riskier to lend to Pakistan, as compared to lending to Egypt, Nigeria or Senegal. Let that sink in.
g.sarkar
BRF Oldie
Posts: 4382
Joined: 09 Jul 2005 12:22
Location: MERCED, California

Re: Pakistani Economic Stress Watch

Post by g.sarkar »

Vimalji,
Investing in Pakistan is risky. I do not think anyone is investing there. I do not see pension funds being diverted to Pakistan for investment. But lending to Pakistan, even if the money will never be returned, is a cheap way to control India's behavior. This has been the case for decades, as India was boxed in. However, as India's economy improves, the cost of lending (donating?) to India's enemies has grown. Another source of Pakistan's foreign exchange income is from its low skilled workers in the Middle East. They are sending billions of $ to their families. Modiji is working on that too.
Gautam
Aditya_V
BRF Oldie
Posts: 14331
Joined: 05 Apr 2006 16:25

Re: Pakistani Economic Stress Watch

Post by Aditya_V »

g.sarkar wrote:Vimalji,
Investing in Pakistan is risky. I do not think anyone is investing there. I do not see pension funds being diverted to Pakistan for investment. But lending to Pakistan, even if the money will never be returned, is a cheap way to control India's behavior. This has been the case for decades, as India was boxed in. However, as India's economy improves, the cost of lending (donating?) to India's enemies has grown. Another source of Pakistan's foreign exchange income is from its low skilled workers in the Middle East. They are sending billions of $ to their families. Modiji is working on that too.
Gautam
+1, that has been the case for 75 years
yensoy
BRF Oldie
Posts: 2494
Joined: 29 May 2002 11:31
Location: USA

Re: Pakistani Economic Stress Watch

Post by yensoy »

^^^^ Beside the leverage in controlling behaviour, it is a clear action in favour of the military-industrial complex. Give Pakis a free bauble for $100M, and sure enough you can expect Indians to quickly place an order for $500M of equipment to match.
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

Pliss to check the comments section.
Low trust and seller education biggest challenges in Pakistan ecommerce, says Daraz CEO
“If the seller sends a red t-shirt instead of a blue one, that only undermines trust. The customer will not buy again. We can only be as good as our sellers,” he said, adding that the trust deficit exists in developed markets like the United States and Europe to a “much, much lesser extent”.
The company has set up the “most technologically advanced logistics facilities in South Asia” :mrgreen: in partnership with Cainiao Network, logistics arm of the Alibaba Group, at a total cost of $4m, he said.
Vips
BRF Oldie
Posts: 4699
Joined: 14 Apr 2017 18:23

Re: Pakistani Economic Stress Watch

Post by Vips »

$4 M for an advanced logistics facility? :rotfl:

Forget setting up automated lines for order fulfillment lines with robots, you cant even build a decent size warehouse for that piddly amount.
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

Pakistan seeks rescheduling of $27bn bilateral debt: Ishaq DarPakistan seeks rescheduling of $27bn bilateral debt: Ishaq Dar
WASHINGTON: Pakistan's new finance minister, Ishaq Dar, told Reuters on Friday that he will seek rescheduling of some $27 billion worth of non-Paris Club debt largely owed to China, but will not pursue haircuts as part of any restructuring.

In an interview, Dar ruled out the possibility of a default on Pakistan's debt, an extension of the maturity date on bonds due in December or renegotiation of Pakistan's current International Monetary Fund program.

The veteran finance minister said multilateral development banks and international donors have been "quite flexible" with ways to meet Pakistan's external financing needs estimated at about $32 billion after devastating floods. Some of this may come from reallocating funds from previously approved, slower-disbursing development loans, he added.
Vayutuvan
BRF Oldie
Posts: 12060
Joined: 20 Jun 2011 04:36

Re: Pakistani Economic Stress Watch

Post by Vayutuvan »

Vips wrote:$4 M for an advanced logistics facility? :rotfl:

Forget setting up automated lines for order fulfillment lines with robots, you cant even build a decent size warehouse for that piddly amount.
I don't think paxis need a decent warehouse. Simply put all the goods in a garbage dump. Thye will pick through the dump.
Manish_P
BRF Oldie
Posts: 5383
Joined: 25 Mar 2010 17:34

Re: Pakistani Economic Stress Watch

Post by Manish_P »

Vips wrote:$4 M for an advanced logistics facility? :rotfl:

Forget setting up automated lines for order fulfillment lines with robots, you cant even build a decent size warehouse for that piddly amount.
Sir, don't forget the PKR conversion.

That's almost 900 million pkr.

Enough for a nice scam
sumsumne
BRFite -Trainee
Posts: 53
Joined: 15 May 2004 11:31
Location: Bangalore

Re: Pakistani Economic Stress Watch

Post by sumsumne »

Not just forced disappearances but voluntary disappearance is becoming common too

Flight attendant disappears after landing in Toronto
https://www.cp24.com/mobile/news/flight ... -1.6115666
Manish_P
BRF Oldie
Posts: 5383
Joined: 25 Mar 2010 17:34

Re: Pakistani Economic Stress Watch

Post by Manish_P »

Yawn - Auto financing drops for third straight month
The amount of outstanding auto loans decreased for the third consecutive month at the end of September, data released by the State Bank of Pakistan (SBP) showed on Wednesday.
..
Analysts believe the drop in auto financing is partly responsible for the overall decline in car sales, which shrank 7pc on a month-on-month basis to about 13,000 units in September.
Meanwhile passenger car sales in india were around 300,000 units..

India should reimburse bakistan for the local global warming it is causing :((
Anujan
Forum Moderator
Posts: 7806
Joined: 27 May 2007 03:55

Re: Pakistani Economic Stress Watch

Post by Anujan »

Manish_P wrote:
Meanwhile passenger car sales in india were around 300,000 units..

India should reimburse bakistan for the local global warming it is causing :((

They are ahead of you
https://dunyanews.tv/en/Pakistan/672119 ... -havoc:-PM
Prime Minister Shehbaz Sharif seeking international support and additional funds to tackle the challenge of climate change, has stated on Wednesday that Pakistan was in a war against climate change-induced havoc and had become a victim.

“We are only asking for climate justice, we are not using the word reparations at all,” he added.

To another question, the Prime Minister said, “We are obviously concerned because if there is dissatisfaction leading to deeper political instability and we are not able to achieve our basic requirements and goals, this can obviously lead to serious problems.”

“I’m not saying it in terms of any kind of threat, but I’m saying there’s a real possibility,” he remarked.
Manish_P
BRF Oldie
Posts: 5383
Joined: 25 Mar 2010 17:34

Re: Pakistani Economic Stress Watch

Post by Manish_P »

I expect to see the Amreekis and west to start to peddle and push 'Localised warming threats' soon to sidle themselves out of the responsibility, and payouts.

Activation of bots like R Rajan hints at it

We should see a flurry of 'scientific' papers with nicely colored charts shortly.. maybe a noble or two.

Then of course there is direct action - localized. Like Sterlite.
S_Madhukar
BRFite
Posts: 513
Joined: 27 Mar 2019 18:15

Re: Pakistani Economic Stress Watch

Post by S_Madhukar »

Great point Manishji and very worrisome as well! Nice way to seed future conflicts
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

TSP is reducing developmental funding and increasing defence funding. Way to go.
Axe falls on uplift spending as creditors stay aloof
ISLAMABAD: The government has capped the development spending for the first half of the fiscal year at mere 20% of the annual budget because of severe economic crisis, as multilateral creditors remained reluctant to provide any major solace to Pakistan in the aftermath of the recent floods.

However, the spending limit condition would not apply to the parliamentarians' schemes – an unsurprising development. :mrgreen:
rsingh
BRF Oldie
Posts: 4451
Joined: 19 Jan 2005 01:05
Location: Pindi
Contact:

Re: Pakistani Economic Stress Watch

Post by rsingh »

^^^
And what are the "parliamentarian schemes" one wonder. Bismillah to that. Apartments in Belgrave?
Mort Walker
BRF Oldie
Posts: 10032
Joined: 31 May 2004 11:31
Location: The rings around Uranus.

Re: Pakistani Economic Stress Watch

Post by Mort Walker »

Pakistan off grey list!
PKR will stabilize to 200 vs. USD.
Thanks, Brandon!
CalvinH
BRFite
Posts: 1098
Joined: 15 Jul 2007 04:14

Re: Pakistani Economic Stress Watch

Post by CalvinH »

Will strengthen Imran's point that this is an imported government. Whatever was denied to Imran was provided to the current dispensation just to keep Imran out of power.

Go Kaptaan!!!
RCase
BRF Oldie
Posts: 2249
Joined: 02 Sep 2011 22:50
Location: Awaiting the sabbath of Fry djinns

Re: Pakistani Economic Stress Watch

Post by RCase »

Manish_P wrote:
Finance Minister Ishaq Dar warned Moody’s Investor Service on Friday that he would give a “befitting” reply in a meeting with its officials next week if the agency did not reverse the downgrade of Pakistan’s sovereign credit rating.
Didn't Ishaq Dar remind Moody's that Pakistan is an atami takat? Pakistan should stop all discussions with International lenders until this downgrade is reversed.
g.sarkar
BRF Oldie
Posts: 4382
Joined: 09 Jul 2005 12:22
Location: MERCED, California

Re: Pakistani Economic Stress Watch

Post by g.sarkar »

https://www.indiatoday.in/world/story/p ... 2022-10-21
Pakistan out of FATF's grey list after 4 years of being on terror funding list
The Financial Action Task Force (FATF), the global watchdog on terror financing and money laundering, on Friday, said that Pakistan is "no longer subject to FATF's increased monitoring process."
Geeta Mohan, Oct 21, 2022

The Financial Action Task Force of FATF, the global watchdog on terror financing and money laundering, on Friday, said that Pakistan is "no longer subject to FATF's increased monitoring process. The country would continue to work with APG (Asia/Pacific Group on Money Laundering) to further improve its AML/CFT (anti-money laundering & counter-terrorist financing) system."
The FATF is an inter-governmental body established to combat money laundering, terror financing and other related threats to the integrity of the international financial system.
Pakistan Prime Minister Shehbaz Sharif reacted to Pakistan’s exit from the FATF grey list. He tweeted, “Pakistan exiting the FATF grey list is a vindication of our determined and sustained efforts over the years. I would like to congratulate our civil & military leadership as well as all institutions whose hard work led to today's success. Aap sab ko bohat bohat Mubarak (Congratulations to you all).”
.......
Gautam
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

Dollar inflows decrease despite IMF $1.16bn tranche
ISLAMABAD: Despite getting a $1.16 billion tranche from the IMF, Pakistan’s dollar inflows in the shape of loans and grants decreased by 30 percent to $2.23 billion in the first quarter (July-September) of the current fiscal year. Pakistan had acquired $3.2 billion as loans and grants in the first quarter of the last financial year. “It demonstrates that Pakistan has been facing dollar liquidity crunch as its ability to generate dollars eroded with the passage of time mainly because of worsening macroeconomic situation,” top official sources said while talking to The News on Friday.

Islamabad, so far, has remained unable to generate dollar inflows in the shape of launching international bonds and securing commercial loans in the first quarter of the current fiscal year.
Manish_P
BRF Oldie
Posts: 5383
Joined: 25 Mar 2010 17:34

Re: Pakistani Economic Stress Watch

Post by Manish_P »

A-o-A new F(udging) minister Dar-o-nomics working. Y-o-Y inflation down to only 30.68 percent now

Weekly inflation surges to record 4.13pc as energy, food prices spike
The weekly inflation, measured by the Sensitive Price Indicator (SPI), posted a record increase of 4.13 per cent for the combined income group on a week-on-week basis for the period ending Oct 27 mainly due to the highest-ever energy and food prices, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

After rebasing, the SPI recorded the second highest week-on-week increase of 3.68pc on Sept 22 driven by an increase in fuel adjustment prices in the electricity bills of consumers.

On a year-on-year basis, the weekly inflation recorded an increase of 30.68pc.

The annual increase in SPI has been on the decline for some time, falling from a peak of 45.5pc in the week ending Sept 1.
sanjaykumar
BRF Oldie
Posts: 6088
Joined: 16 Oct 2005 05:51

Re: Pakistani Economic Stress Watch

Post by sanjaykumar »

My advice is to abandon the rupee and switch to the Zambian kwacha.
rsingh
BRF Oldie
Posts: 4451
Joined: 19 Jan 2005 01:05
Location: Pindi
Contact:

Re: Pakistani Economic Stress Watch

Post by rsingh »

g.sarkar wrote:
neeraj wrote: With all male dogs exported the Pakistani mard has to contribute to make the females breed.
Please Sir, do not say that. What happens to faithful Khusboo?
Gautam
Pardon but All this was not needed. Mind you there are female brites. Please refrain from such jokes. JMT
mody
BRFite
Posts: 1362
Joined: 18 Jun 2000 11:31
Location: Mumbai, India

Re: Pakistani Economic Stress Watch

Post by mody »

Don't know if this news belongs here....but Kaptaan has been shot and wounded during his protest march!

https://www.bbc.com/news/world-asia-63496202
mody
BRFite
Posts: 1362
Joined: 18 Jun 2000 11:31
Location: Mumbai, India

Re: Pakistani Economic Stress Watch

Post by mody »

https://www.msn.com/en-in/news/in-depth ... 0017b748d5

Some details about the progress of CPEC and assessment of what has been completed so far.
mody
BRFite
Posts: 1362
Joined: 18 Jun 2000 11:31
Location: Mumbai, India

Re: Pakistani Economic Stress Watch

Post by mody »

Ishaq Dar announces Pakistan will move to Islamic banking without interest rates!! These guys just never fail to entertain.

https://www.msn.com/en-in/news/world/pa ... 7d791c3a61
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

TSP is always on the lookout for any opportunity to wiggle out of paying back their debts and all of these clauses will be used to the fullest in the coming days.
Natural disaster-hit countries get automatic debt freeze option
LONDON: Countries hit by climate change-driven disasters such as flooding and hurricanes will automatically be able to freeze debt payments under new plans laid out by the bond market rule setting International Capital Market Association (ICMA).
ICMA's move on Wednesday introduced new "climate resilient debt clauses" (CDRCs) that countries can now plug into the government bonds they sell to raise money on the international capital markets.

They are the result of a UK-convened working group that included G7 governments as well as the International Monetary Fund, World Bank and major US and European banks, investment firms and lawyers.
Any country that uses them will be able to defer their debt payments for a maximum of 2 years, with the aim of giving them enough financial breathing space to provide aid and support to affected populations.

"As well as supporting disaster resilience by freeing up cash flow, CRDCs could help avoid the liquidity challenges faced by low-income countries in such circumstances becoming costly payment defaults," ICMA said.
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

PSO's liquidity crisis puts Pakistan's LNG supply in winter at risk
ISLAMABAD: State-owned Pakistan State Oil's (PSO) liquidity crisis has swooped to an all-time high with an unprecedented hike in its receivables to Rs621.168 billion and payables to Rs268.5 billion, The News reported Monday.

The situation has resulted in the company being unable to offload its liabilities with regard to letters of credit (LCs) amounting to Rs218.5 billion for the import of furnace oil and LNG.

The worrying liquidity crisis has virtually put the LNG supply at risk for the winter season as the receivables and payables of PSO have scaled up to Rs890 billion, a senior official at the Ministry of Energy told The News.
According to the receivables and payables position of PSO as of November 9, available with the publication, the non-payment of a mammoth amount of Rs400.258 billion by Sui Northern Gas Pipelines Limited (SNGPL) under the head of LNG imports has emerged as the major headache for PSO.

The SNGPL has so far committed a default of Rs393.5 billion towards PSO. The utility also owes PSO Rs6.758 billion in the head of exchange rate loss.

The official said the worsening liquidity situation of PSO and non-payment of dues from SNGPL has put the LNG supply at risk.
Vips
BRF Oldie
Posts: 4699
Joined: 14 Apr 2017 18:23

Re: Pakistani Economic Stress Watch

Post by Vips »

Free Money Lottery for Porkistan.
Pakistan will be among the first recipients of funding from a G7 'Global Shield' initiative to provide funding to countries suffering climate disasters, the programme announced on Monday at the COP27 summit in Egypt.

The Global Shield, coordinated by G7 president Germany, aims to provide rapid access for climate-vulnerable countries to insurance and disaster protection funding after floods or drought. It is being developed in collaboration with the 'V20' group of 58 climate vulnerable economies.
A statement issued by Germany on Monday listed Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal as some of the initial recipients of Global Shield packages.
Dilbu
BRF Oldie
Posts: 8266
Joined: 07 Nov 2007 22:53
Location: Deep in the badlands of BRFATA

Re: Pakistani Economic Stress Watch

Post by Dilbu »

Default risk soars amid political turmoil, delay in IMF talks
KARACHI: The country’s default risk as measured by five-year credit-default swaps (CDS) — insurance contracts that protect an investor against a default — rose sharply overnight amid political turmoil and uncertainty about talks with the International Monetary Fund (IMF).

The CDS soared to 75.5 per cent on Wednesday from 56.2pc a day ago, according to data provided by research firm Arif Habib Limited.

Official sources in Washington said last week the schedule for talks between Pakistan and the IMF had been readjusted, but the negotiations are continuing. Media reports, however, claimed that the talks that were scheduled to begin in early November had been postponed until the third week of this month.
Manish_P
BRF Oldie
Posts: 5383
Joined: 25 Mar 2010 17:34

Re: Pakistani Economic Stress Watch

Post by Manish_P »

Tough talking Dar effect

Talks with IMF on ninth review delayed further
Pakistan and the International Monetary Fund (IMF) had another round of engagement on Thursday but could not finalise a schedule for formal talks on the overdue ninth review of a $7 billion loan programme amid a lack of clarity on flood-related financial requirements for this fiscal year and declining revenue stream in the wake of import controls.

“Dates for the ninth review could not be finalised,” a senior official told Dawn after Finance Minister Ishaq Dar had an online meeting with IMF’s mission chief to Pakistan, Nathan Porter, on Thursday.

Mr Dar reiterated the government’s commitment to “successfully completing the IMF programme”, the finance ministry said in a statement, apparently to pacify jittery markets.
What's the next level now for ratings from Moodys, Fitch...
Post Reply