Pakistan Bondholders Stay Wary as Floods Weigh on Outlook
- Nation’s dollar bonds linger near recent lows despite IMF deal
- Devastating floods complicate risks for South Asian nation
Flooded water surround the New Jhoolay Lal Cotton Ginners & Oil Mill in Sanghar district, Sindh province, Pakistan, on Sept. 10.
Photographer: Asim Hafeez/BloombergThis article is for subscribers only.
Pakistan’s dollar bonds are failing to rebound after the nation resumed its deal with the International Monetary Fund as devastating floods drag on the nation’s economic outlook.
The South Asian country’s dollar bonds due in 2031 and 2051 hovered around lows last seen in mid-July, according to data compiled by Bloomberg. The bonds have struggled to recover despite the disbursal of a $1.16 billion loan in late August, which helped the nation to avert default as political turmoil and deadly flooding threatened the economy.