Investors of the jittery market have started to lose confidence as the Sukuk yield hits a sharp rise of 39 percent.
The macroeconomic figures have lost their relevance in the wake of floods; whereas the World Bank (WB) and Asian Development Bank (ADB) have said that they find it hard to convince their boards and shareholders for providing more resources.
The five-year Sukuk yielded a rise of 39 percent showing the loss of confidence of the investors. The bonds are yet to mature in December 2022. The 22 percent nose-diving of the bond during the past weeks has shown the potential faith-loss of the investors.
Another 10-year international bond touching 42 percent has also shown the pattern of investors losing faith. The $1 billion bond will mature on April 15, 2024.
According to media reports, inflation in the country has been expected to touch 30 percent.
On the other hand, the WB and ADB have also been in a stage of quietness despite the International Monetary Fund’s recent approval. Both the WB and ADB have been finding it hard to convince their boards and shareholders to provide more resources.
The failure of major reforms in the energy sector has been the main reason for the WB and ADB towards cash bleeding power and energy sector of the country.
ADB’s loan of $1 billion for the energy sector has been in the pipeline and within the next few months, a mission of the bank would visit Pakistan.
Dr. Khaqan Najeeb, a former advisor to the finance ministry, has said that the comfort of the international market has receded due to multiple events including floods, political uncertainty, delayed funds from friendly countries and rising imports.