Goldman Sachs Sees End to Pakistan Bond Selloff on IMF Prospects.

Goldman Sachs predicts that Pakistan's dollar bonds will recover despite a fractured election mandate. The emerging coalition leaders understand the severity of the economic crisis and are expected to work together to secure aid from the International Monetary Fund (IMF). The recent rally in Pakistan's bonds, particularly those maturing in April 2024, has helped offset post-election losses. The urgency to secure a new loan program is emphasized by Pakistan's limited reserves, upcoming external debt payments, high inflation rate, and previous contraction of the economy. The IMF has expressed its intention to visit Pakistan after the new government is formed to discuss a medium-term package. While the short-term rebound of Pakistan's bonds is expected, the long-term outlook will depend on global financial conditions. [Extracted from the article]