Pakistan’s Bonds Decline Amidst Rising India Tensions

LONDON: The price of Pakistan’s international bonds experienced a decrease of over 1 cent on Wednesday. This occurred after Islamabad communicated that it possesses “credible intelligence” suggesting India’s intention to initiate military action soon, heightening the existing tensions between the two nuclear-armed nations.

The bond maturing in 2036 saw the most significant drop, declining by 1.3 cents to reach a bid price of 71.85 cents per dollar, based on Tradeweb data. However, bid-ask spreads of approximately 1 cent indicated constrained liquidity.

Pakistan’s sovereign dollar bonds decreased as tensions with India intensified.

Relations between the two countries have been strained following an attack on April 22 in Indian Illegally Occupied Jammu and Kashmir (IIOJK), which resulted in 26 fatalities.