The economy of Pakistan is under severe pressure. and the risk of default is just a step away from reality.
This month, Pakistan is due to repaying a billion-dollar bond maturing, and Pakistan’s credit dereliction exchange has reached 93, heading towards a continuous deficit.
Which is the highest in the history of Pakistan
According to an Exploration House, CDS was at 4.2 in January 2021,
Top government experts are adamant that CDS has nothing to do with default.
Global experts point to this concern as investors worry about their rate of return and returns
Due to government policies, the reserves decreased from 20 million dollars to 8 billion dollars in August 2019. Some of this is from Saudi Arabia and China as fixed deposits.
This is a very alarming situation, the government has implemented strict rules for opening LCs on all types of raw materials.
Without raw materials, industry and export will be destroyed.
According to government experts, CDs is just a show-off and should not be seen as a sign of danger.
Pakistan’s biggest hope is from the IMF, World Bank, and other major financial institutions and first-world countries that will provide some assistance to Pakistan, in the account of flood relief.
And this aid is expected to be received this month
But the government does not intend to take any effective measures for the future.
This time, selling some assets and flood relief assistance may save us.
but the risk of default is a reality, we can’t evade