Credit Default Swap Rate is a major problem in Pakistan these days. CDS rates have crossed 30 percent in a single week. “Pakistan reached the Brink of Bankruptcy | The Rate exceeded 92 Percent”
According to the details. The CDS current rate has reached 92.53 yesterday. And it has seen an increase of more than 12% during a single session. Thus, all the assurances of Finance Minister Ishaq Dar have proved futile.
Pakistan reached the Brink of Bankruptcy | The Rate exceeded 92 Percent
Despite Finance Minister Ishaq Dar’s assurances of dues and debt repayments, the country’s CDS has been rising sharply in weeks and months. Pakistan has to pay one billion dollars of sukuk bonds by December 5.
Also read this News: Rawalpindi PTI Dharna | Proposal to change the place of Institutions |
It should be note that on October 3, CDS was 52.82 percent, while by November 21, it has increased to 92.53 percent. It has increased by 39.71% in about one and a half months. The increase shows that there is a negative perception among international investors regarding Pakistan’s ability to pay debts and international obligations.
According to observers, it also indicates that the risk of default is increasing rapidly. While after discussions with the government circles. It is known what could be the reasons for the deteriorating perception of international bond investors looking at the macroeconomic fundamental indicators.
Finance Minister Ishaq Dar said that the current account deficit is likely to remain up to 400 million dollars. But it has increase to 567 million dollars. On a monthly basis, the deficit was $363 million in September, which widened to $567 million in October.
Thus, foreign direct investment also declined in October to $95 million, down 62% year-on-year and 13% month-on-month.
For latest Government Jobs in Pakistan please visit: www.jobsinpakistan.org
