The origin of Pakistan is on its way to the worst monthly achievement since 2023 with increasing tension
The dollar bonds and shares in Pakistan are on their way to the worst monthly performance since 2023, as the tension escalates with India, which has weakened the morale of the investors. Pakistani stocks decrease compared to most of their peers during April, and dollar and rupee bonds have decreased, amid threats of war with India. Pakistani information minister Atallah Tarar said on Wednesday that India could do military action within 24 to 36 hours, adding that Pakistan would respond “in a certain and decisive way.” Relations between the two nuclear neighbors have deteriorated after 26 people died in an attack on April 22, aimed at an area in the Jamu and Kashmir region. New -Delhi accused Pakistan of involvement in the attack, denied by Islamabad. Attempts are being made to calm tensions between the two neighbors, with the participation of countries, including the United States, pushing the atmosphere to calm. The CEO of Asia, ‘Asia Frontier Capital’, said in Hong Kong: ‘Short -term estimates have not been confirmed, which is why we expect the markets to see a decline, but in a limited way, and US customs duties also put pressure on the current situation.’ “Calling stress would reduce investors’ concerns about the deterioration of the fragile relationship between the two countries, and this could lead to a minor recovery in bond prices and stocks,” he added. Losses in Pakistan bonds and equities have incurred investors in the Pakistan bonds denominated in dollars, a loss of about 4% in April, and shares fell by about 3%. On the other hand, the Indian origin looks more volatile, as local stocks and bonds have risen during the same month. Prior to the attack, the investor moral to Pakistan improved thanks to the increase in credit rating and low oil prices. The shares recorded the largest annual profits in 22 years, which paved the way for more increases with improving economic activity in the country. Pakistan lead in the origin of Pakistan, Avanti SAV, head of the credit and strategic research department in Asia at the Barclays Bank, wrote in a research note: “The decline in bond prices in recent days is a good opportunity for investors to buy.” An analyst still recommends investing more in the assets of Pakistan.