Finance Minister Ishaq Dar Friday reiterated that Pakistan will continue to honor all of its financial commitments on time.
In a tweet, the finance minister also shared a purported infographic from Bloomberg about estimated default probability in emerging markets and said that the outlet has pitched Pakistan’s one-year probability of default at a low of 10 percent.
#Bloomberg pitches Pakistan’s one year probability of default at a low of 10% as opposed to a highly dubious number of 93% circulated by an unscrupulous local political leader a few days ago.
Pakistan will inshaAllah continue to honor its all financial commitments on time! pic.twitter.com/XPbAH7unEh
— Ishaq Dar (@MIshaqDar50) November 25, 2022
The minister also criticized a “highly dubious number of 93% circulated by an unscrupulous local political leader a few days ago”.
The minister was likely referring to Pakistani five-year bond’s credit default swap (CDS) that surged to 93 percent on Monday ahead of the repayment of the $1 billion International Sukuk bond maturing on December 5.
However, many were quick to point out to the minister that there’s little relevance between the five-year bond’s credit default swap and the one-year probability of default.
More importantly, on Friday, State Bank of Pakistan (SBP) Governor Jameel Ahmad said that Pakistan will repay the $1 billion International Sukuk bond three days before its due date.