ISLAMABAD: Pakistan's Finance Minister Ishaq Dar on Saturday rejected concerns that the country would be unable to repay a $1 billion bond maturing in December, urging people to refrain from speculating and spreading rumors that ultimately harm the country's perception.
Data from an independent brokerage house earlier this week said Pakistan’s perceived risk of default has risen sharply to 79.33 percent. The risk rose at the back of the current political turmoil and uncertainty surrounding the ninth review of an International Monetary Fund (IMF) bailout package.
According to the statistics released by Arif Habib Limited on Thursday, the country’s five-year credit-default swaps (CDS) increased from 7,550 basis points (bps) on November 15 to 7,933 bps on November 16, constituting a single-day of increase of 383.8 bps.
"Rumors are being spread that Pakistan will not be able to pay this [Sukuk bonds maturing in December]," Dar said during a televised address.
"Thanks to God, Pakistan has never defaulted on its international payments, barring once when East Pakistan seceded," he added, saying that it was related to a small payment to an American insurance company.
"I am categorically saying that this bond will be paid on time and there would be no delay in this and whatever payments that we are to make within one year, we have finalized or we will finalize them," he added.
The minister said Pakistan's current account deficit will be between $5 billion and $6 billion in FY 2022-23 instead of the initially projected $12 billion.
He termed the CDS data as "irrelevant and speculative calculation" adding that it was unfortunate that people in responsible positions within the country were using that data to spread damaging news about Pakistan.
Dar also said that there was no shortage of petrol or diesel reserves in the country.
