Based on Reuters, the Finance Minister, Miftah Ismail said that stability is challenging due to the environment, and yet remains challenging due to the situation. However, he added that the country continues to decide not to default and manage debt risk. Mr Ismail believed that the recent global market is jittery, especially towards Pakistan. The country suffered around $18bn due to the floods. Worse, the total could still crawl up as much as $30bn. So, in a statement, he argued that it is indeed the credit default risk that has escalated. The country’s bond prices also shrinked.
However, Mr Ismail is confident that the market would be stable and back to normal for around 1u5 to 20 days. Therefore, Pakistan is currently being prudent. The price comprises the big payment is $1bn international bonds due in December. On this occasion, he is sure that Pakistan is still able to meet the debt risk. In addition, the International Monetary Fund argued previously that they will work with the international community to support Pakistan. The support could be in the form of economic relief and reconstruction efforts. The firm also favors more support in ensuring sustainability and stability.
In addition, the finance minister believed that the external financing sources are well now. This comprises more than $4bn from the Asian Development Bank as well as Asian Infrastructure Investment Bank and World Bank. It covers $1.5bn next month from ADB under the Countercyclical Support Facility. So far it would be the instrument for budget support. Plus, the minister noted about $5bn in Qatar investment, the UAE, and Saudi Arabia materializing in the present financial year.
