Pakistan stock markets, bonds to see worst month since 2023 as Indo-Pak border tensions mount
In April, Pakistani equities have shown weaker performance compared to regional markets, whilst the rupee and dollar bonds declined amidst potential conflict with India, according to a Bloomberg report.
Pakistan's Information Minister Attaullah Tarar claimed on Wednesday that India would initiate military operations within 24 to 36 hours, stating that Pakistan would respond "assuredly and decisively."
The relationship between these nuclear-armed nations worsened following the terror attack on April 22 in the Jammu and Kashmir region, resulting in 26 casualties.
"A reduction in tensions would naturally ease investors' concerns about potential worsening of the delicate relations between the two nations, potentially leading to modest gains in bond and equity markets," Hugger noted.
Also Read | Foreign investors back with $4.11 billion in Indian equities! FPIs extend longest buying spree since July 2023
Before this development, Pakistan's investment outlook was becoming more positive, supported by improved credit ratings and declining oil prices. The stock market had recorded its strongest annual performance in 22 years, creating favourable conditions for additional growth as the nation's economic activities increased, the Bloomberg report said.
"Recent declines in bond prices present favourable investment opportunities," wrote Avanti Save, head of Asia credit research & strategy at Barclays Bank Plc, in a note. She continues to maintain an overweight position on the country.
Top 10 Largest Economies In The World 2025: What are the 10 largest economies in the world? Did you know that India, which currently stands at the 5th position, will soon become the world’s 3rd largest economy by overtaking Germany and Japan? India is the world’s fastest growing major economy and its nominal GDP has grown 100% in the last 10 years! But even so, as per IMF’s 2025 projection, the GDP of US and China - the world’s largest and second largest economies - will be 7.3 times and 4.6 times respectively - that of India! We take a look at the world’s top 10 largest economies by nominal GDP size as per IMF and when India will become the third largest, next only to the US and China:
Top 10 largest economies 2025: The United States of America will continue to be the world’s largest economy in 2025, according to the IMF's latest World Economic Outlook update. The IMF has predicted that the US economy will have a nominal GDP of $30507.217 billion in 2025. (AI image)
Top 10 largest economies in the world 2025: China will rank second on the list of the world’s top 10 largest economies in 2025, as per IMF’s estimates. The latest WEO report pegs China’s GDP for 2025 at $19,231.705 billion. (AI image)
Germany will continue to be the world’s third largest economy in 2025 as well. According to the IMF, Germany’s nominal GDP in 2025 will be around $4,744.804 billion. (AI image)
Japan is currently the world’s 4th largest economy in terms of nominal GDP. In 2025, it will continue to hold this position with a GDP of $4,186.431 billion, according to IMF’s WEO estimates. (AI image)
The world's fifth largest economy is India! According to the IMF, India's nominal GDP in 2025 is likely to be $4,187.017 billion. In the coming years, India will overtake both Japan and Germany to rank 3rd in the list of the top 10 largest economies in the world. IMF estimates see India becoming the 4th largest economy in 2026 with a GDP of $4,601.225 billion and the 3rd largest economy in 2028 with a GDP of $5,584.476 billion. (AI image)
The United Kingdom ranks 6th on the list of world’s top 10 largest economies by nominal GDP size for 2025. IMF’s latest estimates peg the UK's GDP at $3839.18 billion for 2025. (AI image)
France will hold the position of the world’s 7th largest economy in 2025, as per IMF’s latest WEO report. In 2025, France’s nominal GDP is expected to be $3,211.292 billion. (AI image)
Top 10 largest economies in the world 2025: Italy - with an 8th rank on the list - is estimated to have a nominal GDP of $2,422.855 billion in 2025, according to IMF’s World Economic Outlook report. (AI image)
Canada will hold the 9th rank on the list of the world’s top 10 largest economies in 2025. The IMF's latest outlook estimates that in 2025, Canada’s GDP will be $2,225.341 billion. (AI image)
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