Pakistan bonds fall as poll results delayed amid mobile shutdown

Pakistan bonds fall as poll results delayed amid mobile shutdown

Pakistan’s dollar bonds fell after poll results were delayed in the South Asian country amid a shutdown in mobile services. Stocks also dropped.

Bonds due in 2051 were indicated as much as 5 cents lower — the most since September 2022 — to trade at 60.8 cents on the dollar, while the 2029 and 2031 notes also dropped. Pakistan’s benchmark KSE-100 Index of shares fell the most in more than one month.

Investors and credit rating agencies are watching the polls closely, to see if a government that will push for tough reforms will be elected. Pakistan had earlier suspended mobile services across the country, defending the measure as a way to maintain order amid militant incidents.

“A timely announcement of the results, leading to a smooth formation of a new government will reduce policy and political uncertainty,” said Grace Lim, Analyst, Moody’s Investors Service in Singapore. “This is crucial for the country that is facing very challenging macroeconomic conditions, with fragile balance of payments, weak growth and high inflation.”