KARACHI: Yields on Pakistan’s international bonds and Sukuk have risen in global markets, indicating that the risk of default on international payments has risen as a result of monetary policy tightening and global economic slowdown.
The yield on the $1 billion Third Pakistan International Sukuk Co Ltd jumped 778 basis points to a five-week high of nearly 40%. On December 5, 2022, the five-year Sukuk matures.
The yield on the Sukuk had recovered to 18% around the time that the International Monetary Fund (IMF) executive board reactivated the $6.5 billion loan program for Pakistan on August 29, 2022.
Previously, it had risen to 50% in mid-July 2022 due to a delay in the resumption of the lending program, according to domestic brokerage houses.
Similarly, the yield increased by 119 basis points.