Taliban Walkover Has Adverse Effects on Pakistan’s Economy
Pakistan’s dollar-denominated bonds performed awfully after the Taliban overthrew Ashraf Ghani in Afghanistan
After the Taliban got a walkover in Afghanistan to retain their rule after two decades, the economic conditions in Pakistan seem to retrogress with the country’s dollar bonds taking a dip and severe uncertainty at Pakistan Stock Exchange (PSX).
As per a report published in Bloomberg, dollar-denominated bonds of Pakistan performed awfully after the Taliban overthrew Ashraf Ghani in Afghanistan.
Pakistan’s dollar bonds take a beating amid Taliban takeover in Afghanistan. Follow this link for round-the-clock updates on Afghanistan https://t.co/dJZrlOs3pj pic.twitter.com/gYuUOS92fO
— Faseeh Mangi (@FaseehMangi) August 16, 2021
“Its dollar-denominated bonds due in 2031 fell 1.6% in New York to trade at 100.8, heading for their biggest daily drop since they were issued in April”, the report said.
Read Also
RDA Deposits Reach One-Third of IMF Loan Amount
Bloomberg suggested that the investors are concerned about the law-and-order situation in Pakistan after the change in regime in Afghanistan.
Head of Fixed-Income Asset Management of a Dubai-based company, Abdul Kadir Hussain, said that the investors are concerned whether global forces will try to isolate Pakistan for the perceived support of the Taliban.
On the other hand, uncertainty and nervousness prevailed at PSX with the benchmark KSE-100 index lowering by 0.54% to close at 46,912.79 points on August 16.
Summary of Stock Market Closing as of 16th August, 2021.https://t.co/wVrt7tvnwv#PSX #MarketClosingSummary pic.twitter.com/d6oogbcwqQ
— PSX (@pakstockexgltd) August 16, 2021
It is the first time in the past few months when KSE-100 has finished below 47,000 points.
