Could Pakistan default? As the economic uncertainty and foreign exchange reserves continue to deplete
Since Khan’s ouster in April, a continuous uncertainty prevails in the Pakistani government, as well as; it has been reported that the foreign reserves of the country continue to deplete, and it is said that the country is left with only two months of reserves. At the same time, it has been reported that the Shehbaz Sharif’s government has failed to control the economic crisis and IMF’s role also remains uncertain as the country’s still unsure whether decisions are being made from London or Islamabad.
Whereas, it is pertinent to mention that Pakistan may well default as it might fail to pay the debts owed. Is it a decision-making fault or fate? A question that has been in almost every Pakistan’s mind is, “Pakistan may well face a similar situation like Sri Lanka..” What happens if the country defaults? “Energy shortage, as well as food supply would be effected and country’s currency would be devalued.”