Investors shun Pakistani bonds on rising default threat

Investors are on alert for Pakistan to follow Sri Lanka into default as the south Asian country struggles with soaring commodity prices and tighter credit conditions.

Pakistan’s foreign bonds due to mature in 2024, 2025 and 2026 are trading firmly in distressed territory, at about 71, 65 and 63 cents on the dollar, respectively, according to Bloomberg data.

The country’s debt has been among the worst performing this year of any…