Dar Says Pakistan’s Probability of Default Only 10%

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.

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.

  • Again a factually wrong headline to generate panic and fear.

    Dar, only quoted a Bloomberg chart. Why is it that ProPakistani, is publishing such pathetic headlines to get clicks.

    Aamir Atta are you awake or sleeping.

    This will be reported to PEMRA.

  • close