Pakistan bond divergence shows investor unease over IMF programme

The news was finally confirmed last week that Pakistan had won approval to borrow US$3bil (RM13.6bil) from the IMF, releasing funds to help ease its immediate cash needs.- Bloomberg

ISLAMABAD: The divergence between different Pakistan bond maturities has been widening since news emerged last month of an International Monetary Fund (IMF) cash injection, showing investors remain unconvinced about the nation’s ability to pay long-term.

Prices of the nation’s US$1bil (RM4.52bil) debt due April 2024 have jumped to about 80 US cents (RM3.62) on the dollar from about 50 cents (RM2.26) in late June, about twice the gains seen in bonds due 2031.