Karachi: Sovereign bonds plunged on Friday after Pakistan’s bailout talks with the IMF ended without a deal.
The country’s bond which was due to be paid off as soon as possible, in April 2024, fell 4.6 cents on the dollar or about nine percent.
Other bonds with longer repayment dates fell between two and three cents to less than half their face value.
The country is in the midst of a shortage of dollars, which is causing a depreciation in the value of the rupee against the dollar.
The country’s inability to finance its imports has led to a shortage of industrial raw materials and a disruption of production.
Sentiment in capital markets has fallen amid a deepening currency crisis as the country desperately tries to revive the IMF’s $7 billion lending program.