Pakistan Default Risk Grows as Khan Arrest May Delay IMF Deal
- Dollar bonds due 2031 decline to lowest since November
- External debt service seen at about $22 billion, Columbia says
Motorists ride past burnt vehicles following protests, in Lahore, on May 10.
Photographer: Arif Ali/AFP/Getty Images
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Pakistan is edging closer to a default as political unrest sparked by the arrest of former prime minister Imran Khan is set to delay an International Monetary Fund bailout.
“It looks increasingly difficult for Pakistan to avoid a default in the absence of fresh funding support coming in,” said Eng Tat Low, an emerging-market sovereign analyst at Columbia Threadneedle Investments in Singapore.