According to data provided by brokerage firm Arif Habib Limited (AHL) on Wednesday, Pakistan’s 5-Year CDS increased by 1,929.6bps from 5,620bps on November 14 to 7,550bps on November 15.
Pakistan is currently enrolled in an IMF programme and is looking for additional inflows. The IMF Staff Mission is expected to arrive in Islamabad by the end of this month, but the date has not yet been set because the Fund wants Pakistan to first make the necessary adjustments.
“Uncertainty about the ninth IMF review is driving this sentiment,” said Abdullah Umer, a financial market expert.
According to a market analyst, the delay in IMF review while the government seeks relief from the international lender adds to global investors’ uncertainty.
“However, it will return to normal after inflows from foreign countries such as Saudi Arabia and China materialise,” he added.
According to the most recent data available, the State Bank of Pakistan’s (SBP) foreign exchange reserves fell $956 million on a weekly basis, totaling $7.96 billion as of November 4, 2022.
SBP Governor Jameel Ahmad, on the other hand, remains confident that the central bank has sufficient foreign exchange reserves.
“We have more than $7.9 billion in reserves.” “These are more than enough to meet any obligations,” he stated.
