Pakistan runs out of money: Pakistan is now cash-strapped. Pakistan is currently experiencing a serious political and economic crisis. Pakistan’s credit rating has been reduced by international rating agency Moody’s. According to the Moody’s analysis, Pakistan’s prolonged political unrest may cause the country to experience a severe economic disaster.
Simultaneously, the incoming administration will face significant difficulties in rescuing the nation from a dire economic situation. Pakistan’s new government would likely have trouble approaching the International Monetary Fund (IMF) for a new loan in April given the country’s $49.5 billion debt, according to Moody’s. This is because to political unpredictability.
The three-and-a-half-year loan of $3 billion that Pakistan received from the IMF in June of last year is coming to an end. However, Pakistan requires a large loan once more in order to support its economy.
Moody’s has issued a warning to Pakistan, claiming that the country’s coffers could run empty by April. Pakistan’s economy will be even more severely damaged by this, which will be very challenging for them to manage.
Pakistan’s credit rating has declined.
Pakistan has had its credit rating reduced by Moody’s. Its rating is now only two ranks above default, at CAA3, down from CAA1 when it was previously.
Pakistan should take note of Moody’s assertions because the country’s economy is heavily reliant on IMF funding. Pakistan has already gotten a loan from the IMF in 2023, but it will now require another one when 2024 gets underway.
The Pakistani rupee similarly declined in value, trading at 30 paise to the Indian rupee.
The value of the Pakistani rupee has also declined. It is becoming less valuable by the day. One US dollar is now worth 277 Pakistani rupees, while one rupee in India is worth 30 paise.
In a report on the state of affairs, the think tank Tab Ed Lab, situated in Islamabad, predicted that Pakistan would eventually default and that the economy of the nation would continue to deteriorate. Pakistan will find it challenging to break this loop. Its economy has collapsed.
Pakistan will continue to deteriorate unless there is a significant improvement and a radical shift in the prevailing circumstances, the research stated. Pakistan’s political parties are to blame for this. These politicians have done all in their power to plunder the nation. Pakistan’s debt has grown to such an extent that it must extend its hands to other nations in order to make interest payments.
Pakistan’s debt of $49.5 billion is due by 2024.
Pakistan’s internal debt has climbed sixfold since 2011, while the country’s international debt has nearly doubled. The $3 billion that Pakistan received from the IMF last year is about to expire. The Pakistani publication Dawn claims that the new government is concerned by Moody’s appraisal of the scenario following the elections in Pakistan.
No matter what kind of government is created there, political instability is guaranteed, according to Moody’s. Pakistan is estimated to owe $49.5 billion by Moody’s in 2024. Interest on Pakistan’s debt makes up thirty percent of the total.
“Pakistan is dealing with both a political and an economic crisis. On February 8, general elections were held here, however the government has not yet been constituted. But the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan People’s Party (PPP) decided to create a coalition government on Tuesday, February 20, 2024.
Pakistan is now cash-strapped. With just 30 days remaining and $3 billion in debt, Moody’s issued a warning.
