Pakistan’s Markets Face Selloff From Surging Oil, Conflict
A Pakistani army tank stands at the Pakistan-Afghanistan border in Chaman on Feb. 27.
Photographer: Abdul Basit/AFP/Getty ImagesPakistan’s dollar bonds are on track for the biggest monthly drop in three years as a fallout from surging oil prices due to the Iran war and the conflict with Afghanistan weigh on the assets.
The eurobonds are on course to hand investors losses of more than 5% since the start of the conflict with Afghanistan in end-February. That’s double the losses faced by the broader Bloomberg EM Dollar Aggregate Sovereign Index, which tracks dollar debt from developing countries including Pakistan, during the same period.