Moody’s warns Pakistan on high debt refinancing

Pakistan is likely to face high refinancing cost for its international bonds maturing over the next two years, which would increase the country’s debt burden. Moody’s said in a report that Pakistan tops those countries that will be the most exposed to costly debt financing, as its international sovereign bonds mature in 2019 and 2020. Moody’s said a further drain on foreign exchange reserves would raise the risk of lower capital inflows and higher refinancing costs. Currently, at least 8 Pakistani bonds are trading in the international market.