If Pakistan defaults on the loan, will the whole country be mortgaged? Know what will happen to Jinnah’s country
Pakistan Economic Crisis: A few days after IMF officials and Pakistan’s Finance Minister Ishaq Dar resumed talks on the bailout package in Islamabad, Prime Minister Shahbaz Sharif explained the impending crisis in the country. During this, he warned of difficult times to come to Pakistan. Because the government is struggling to meet the conditions set by the International Monetary Fund (IMF) to get the next tranche of the bailout package. In such a situation, if the country cannot repay the loan on time, what can be its effect?
According to a report by the news agency AP, Pakistan has barely enough money left to pay the import bill for the next three weeks. Pakistan is seeking a significant tranche of $1.1 billion out of the $6 billion bailout package being offered by the IMF to avoid continuous default. Although the IMF has asked to take several important steps before releasing the installment, which has become a bone of the neck for the government. (Image: Reuters)If Pakistan’s reserve falls so low that it cannot pay the loan installments, then in this case it can be declared a default. As a result, the country’s credit rating will be further downgraded by rating agencies like Moody’s and S&P. In this situation, the government will have to face a lot of difficulties in getting loans at the international level and its condition may be like Sri Lanka. (Image: Reuters)If Pakistan’s reserve falls so low that it cannot pay the loan installments, then in this case it can be declared a default. As a result, the country’s credit rating will be further downgraded by rating agencies like Moody’s and S&P. In this situation, the government will have to face a lot of difficulties in getting loans at the international level and its condition may be like Sri Lanka. (Image: Reuters)In case of default, inflation in Pakistan will increase unexpectedly. Along with this, due to the shortage of raw materials, the country will also have to go through the scarcity of many essential things. In an emergency, people often panic. From ration to medical stores, the news of looting along with several kilometers-long lines also becomes common. (Image: Reuters)In Pakistan, not only will the people of the country have to suffer economically, but terrorism will also reach its peak due to this. In the event of increasing unemployment and anger with the government, a large section of the country can join terrorism, due to which it will be difficult to save the country. (Image: Reuters)
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