Skip to content

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. 

People watch screens showing a speech by Imran Khan after being elected in 2018. 

Photographer: Asim Hafeez/Bloomberg
Updated on

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.