Eurobond yield rises: Bloomberg shows fear of economic collapse in Pakistan

Bloomberg showed fear of an economic collapse in Pakistan after the Eurobond yield reached 19% at the end of the PTI government.

A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued which is also called an external bond.

The NY-based media company released the statistics of Pakistan’s economy which showed an increase of 19% in Eurobond yield. A Bloomberg report raised the alarm of an economic collapse ahead in light of the statistics regarding the Eurobond yield curve.

It was reported that the yield on Pakistani bonds rose after March 8 following the vote of confidence, whereas, at the end of the Pakistan Tehreek-e-Insaf (PTI) government, the yield on bonds was 6%.

GDP prediction: NAC approves statistics showing economic growth during PTI-led govt

Bloomberg reported that Pakistani debt is now standing three times more expensive as compared to the previous government. The deteriorated economic situation could lead to the risk of default due to higher rates.

The report was followed by the National Accounts Committee’s acknowledgement regarding the economic performance of the Pakistan Tehreek-e-Insaf (PTI) government as the gross domestic product (GDP) was estimated at 5.7 per cent in the last year of Imran Khan’s rule.

The controversy over the rate of economic growth over the past few months has ended as the National Accounts Committee declared the data of 5.7 per cent economic growth under the rule of the former prime minister instead of 5.5 per cent which made the critics silent.

The National Accounts Committee (NAC) met under the chair of the federal secretary of planning yesterday in which the economic statistics for 10 months of the current fiscal year from July 2021 to April 2022 and the previous fiscal year from July 2020 to June 2021 were reviewed and approved.

Positive indicators of economy reflect excellent performance of PTI govt

The forum approved the data of 5.7% GDP growth which is predicted to be increased up to 5.9% in the current fiscal year. According to the NAC, the growth rate of the agricultural sector was 3.48% in the last financial year, while the growth rate of the agricultural sector is expected to be hiked up to 4.4% in the current financial year.

During the current financial year, sugarcane production increased from 81 million to 88.7 million tonnes, and rice production from 8.4 to 9.3 million metric tons. maize from 8.4 to 16 million metric tons, whereas, the wheat product decreased by 1.1 million metric tons from 27.5 to 26.4 million tonnes.

Cotton production increased from 7.1 million to 8.3 million bales.

The rate of livestock will be 3.2%, the growth rate of forests will be 6.1% and the industrial growth rate will be 7.1%, whereas, the rate of industrial growth was 7.8% in the last financial year. The growth rate in major industries is expected to be 10.4%.

In the last financial year, the growth rate in major industries was 11.4%. The NAC was apprised that the growth rate in small-scale industries is expected to be 8.90% as against 8.97% in the previous financial year.

The growth rate in the energy sector will be 7.8% as compared to 6.3% in the previous financial year.

The growth rate in the services sector is predicted at 5.6% as compared to 6% in the previous financial year. Similarly, the growth rate in the education services sector will be 8.6%. The growth rate in the finance and insurance sectors is expected to be 4.9%.

Economists have praised the National Accounts Committee’s statistics and said that the dispute over the rate of economic growth has been resolved after the official data.