Credit-default swaps surged in late October?

Pakistan''s credit-default swaps surged in late October and lingered near their highest level since June, reported Bloomberg. It further stated that South Asia''s second-largest economy, Pakistan, faces challenges as it struggles with dwindling foreign reserves, rising debt payments and a ballooning current account deficit. Pakistan is mulling a potential $2 billion debt sale later this year.
Speaking at the Bloomberg Pakistan Economic Forum last week, Central Bank Deputy Governor Jameel Ahmad played down concerns over the country''s widening twin deficits. Fiscal deterioration from pre-election policy loosening is possible in South Africa, Indonesia, Pakistan and Costa Rica. A deterioration of debt-to-GDP ratios in "a fairly large number of countries that are going to the polls" might make the market less tolerant about pre-election fiscal loosening than might otherwise be the case", according to the Citi report. It further states that of the riskiest nations ie Lebanon, Egypt, Pakistan and Bahrain have not recorded a default event since their independence.