News

Dollar bonds and stocks in Pakistan are poised for the worst month since 2023, as escalating tensions with neighbor India roil investor sentiment.

Pakistani stocks are underperforming peers in April while dollar bonds and the rupee also fell, amid the threat of war with neighbor India. Pakistan’s Information Minister Attaullah Tarar Wednesday said India would carry out military action in the next 24 to 36 hours, adding Pakistan would respond “assuredly and decisively.”

Relations between the nuclear-armed neighbours deteriorated after 26 people were killed on April 22 in an attack on an area in the Jammu and Kashmir region. New Delhi has accused Pakistan of involvement, a claim Pakistan has denied.

“The outlook in the near term is uncertain and therefore we can expect further slight weakness since additionally, the US tariffs are an overhang,” said Thomas Hugger, chief executive officer and fund manager at Asia Frontier Capital Ltd. in Hong Kong.

“Any de-escalation of the tension will obviously calm down the nervousness of investors regarding further deterioration of the fragile relationship between the two countries and we can expect a small rally in bond and equity prices,” Hugger added.

Dollar bonds have handed investors a loss of nearly 4% this month, while equities are down almost 3%. Meanwhile, Indian assets are proving relatively immune for now with stocks and local bonds up this month.

Ahead of the incident, investor sentiment toward Pakistan was improving with a rating upgrade and falling oil prices. Stocks were coming off the biggest annual gain in 22 years, setting the stage for further gains as economic activity picked up in the country.

“The fall in bond prices in recent days offers good entry points,” Avanti Save, head of Asia credit research & strategy at Barclays Bank Plc, wrote in a note. She maintains an overweight rating on the country.

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

${res.must_watch_article[0].headline}

Sensex Today Jammu Kashmir News Live DC vs KKR Live Score Canada Election Results Q4 Results 2025 Live Ather Energy IPO GMP JKBOSE 10th Result 2025 TS SSC Results 2025 NEET Admit Card 2025 IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.