SBP chief assures market of timely foreign debt repayments

State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday the country will meet all foreign debt obligations on time. “There should be no concern about that,” he said while speaking at a gong-ringing ceremony at the Pakistan Stock Exchange (PSX). The risk of sovereign default hit its highest level since November 2009 early this week. The country’s five-year credit default swap (CDS) — a type of insurance against the risk of sovereign default — increased by more than three percentage points on Oct 25 to reach 52.8 per cent, a 13-year high. The rising CDS level is reflective of investors’ dwindling confidence in Pakistan’s ability to pay back its international loans. “Recent progress relating to international financial institutions is a positive development,” said the SBP governor while referring to the seventh and eight reviews of the International Monetary Fund programme as well as the inflow of $1.5 billion from Asian Development Bank.