How close is Pakistan to default

[HAIDER]

https://twitter.com/x/status/1587329146543284224

 

[Genghis khan1]

https://twitter.com/x/status/1587329146543284224

Explain a bit for us.

 

[MultaniGuy]

Hopefully China can bail us out.

 

[Abid123]

Hopefully China can bail us out.

Brother stop you sound so cringe. China is not our daddy.

 

[alphapak]

All thanks to Army and Dumber 1, they destroyed a Pakistan that was heading in right direction.
When IK was ousted Pak reserves were about 20 billion, now they are 6-7 billion. Barwa, Nadeem
Anjum, Faisal Naseer should all be hanged for treason.

 

[Clutch]

Default and total destruction is the best path forward for this corrupt state. Only from its ashes can we build a new Pakistan free from Patwaris.

Pakistan needs to be reborn. There will be pain and suffering.... But cancer surgery is necessary.

 

[TheSolution]

Default and total destruction is the best path forward for this corrupt state. Only from its ashes can we build a new Pakistan free from Patwaris.

Pakistan needs to be reborn. There will be pain and suffering.... But cancer surgery is necessary.

Agreed but you won't get a chance for ground up nation building after that because of your extremely friendly neighbours

 

[Clutch]

Agreed but you won't get a chance for ground up nation building after that because of your extremely friendly neighbours

So be it. Perhaps new blood shed for independence will ensure freedom isn't traded for $$$ in the future.

 

[MultaniGuy]

Brother stop you sound so cringe. China is not our daddy.

China is not our daddy. But China can help us out.

We can reciprocate by doing certain deals with China.

 

[fitpOsitive]

https://twitter.com/x/status/1587329146543284224

Hamko qerzy dyny waly default hojaingy, ham nai hogy. Kion keh ham kisi or se qerza pakar laingy... Mirza Ghalib k janasheen.

 

[Hephaestus]

China is not our daddy. But China can help us out.

We can reciprocate by doing certain deals with China.

 

[HAIDER]

Explain a bit for us.

Pakistan’s default risk spikes​

Reaches new high of 64.2%, indicating country lacks resources for debt repayment on time

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Our CorrespondentNovember 15, 2022

Photo: file

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KARACHI:
Pakistan’s risk of default, measured through the five-year currency default swap (CDS) index, on Monday spiked 4.2 percentage points to a new high at 64.2%, suggesting that the country lacked resources to meet the growing import payments and foreign debt repayments on time.
Pakistan is scheduled to repay $1 billion against a five-year Sukuk (Shariah-compliant bond) maturing on December 5, 2022.
The yield (rate of return) on the Sukuk surged by 964 basis points in a day to 69.96%, according to Topline Research. The spike in the yield suggests that investors are thinking the country may default on the $1 billion Sukuk.
State Bank of Pakistan (SBP) Governor Jameel Ahmad, however, clarified during the day that the country had foreign exchange reserves of “over $9 billion, which are more than enough” to pay for imports and repay foreign debt.
The five-year CDS exhibited a high risk of default after Pakistan announced that Saudi Crown Prince Mohammad bin Salman had postponed his visit to Islamabad and a new date would be announced soon.
The crown prince had been expected to announce investments of over $10 billion during his trip. The expected inflows would have strengthened Pakistan’s foreign exchange reserves.
MSCI review
In its semi-annual review announcement on November 10, 2022, the MSCI removed MCB Bank from its main Frontier Market (FM) index and added it to the Frontier Market small-cap index, the research house said.
Pakistan has now only two constituents left in the MSCI FM index, which include Lucky Cement and Oil and Gas Development Company.
MSCI did not notify Pakistan’s weight in the index, but it is now estimated at 0.7%. The changes to the FM index will come into effect on November 30, 2022.
As per the MSCI’s market classification framework, the size and liquidity requirements for the constituents of the FM index include full-cap market size of $1 billion, free float market capitalisation of $91 million and 2.5% of annualised traded value ratio.
Earlier, Pakistan was reclassified and placed in the MSCI FM from the Emerging Market in November 2021.
According to the MSCI, Pakistan had met the requirements for market accessibility under the classification framework for emerging markets, however, it no longer met the size and liquidity standards, which led to the reclassification.
Published in The Express Tribune, November 15th, 2022.

Default risk: The likelihood that the bond's issuer will fail to meet the requirements of timely interest payment and repayment of principal to investors is called default risk. Investors should work with a to evaluate a bond's default risk. Assess a State or Local. Government's Financial.

 

[Genghis khan1]

Let it crash and burn, once there’s no fuel, gas and food may be than stupid people get off their charpai and start hanging corrupt politicians.

 

[chinasun]

Hopefully China can bail us out.

As Pakistan's first qualified RMB Clearing Mechanism, ICBC Karachi Branch has successively launched a series of products portfolio including RMB forwards, swaps, Letter of Credit, Guarantee, and structured trade financing in Pakistan

China-Pakistan RMB Clearing Arrangement: lower cost, higher vitality

Advancing the China-Pakistan Economic Corridor (CPEC) with greater efficiency and making CPEC an exemplar of high-quality Belt and Road cooperation was one of the main themes during Pakistani Prime Minister Muhammad Shehbaz Sharif's visit to China.

news.cgtn.com

Some goods are imported in RMB. Pakistan exports goods in dollars.

 

[fatman17]

Likelihood of default is 58%. Risen from 6% at the start of Covid-19.