As Pakistan is going through one of its biggest economic crises in history — the Washington-based think tank United States Institute of Peace (USIP) — has warned that there is “a real danger that Pakistan could default on debt”. In an analysis and commentary published the author warned that amid skyrocketing inflation, political conflicts, and rising terrorism, the country is facing the risk of a default due to its massive external debt obligations. It was added that the looming default danger could further intensify political turmoil amid already surging terrorism.
The cash-strapped nation of 220 million people is reeling with the repercussions of a deepening political crisis — which initially began in April last year when former prime minister Imran Khan was ousted through a vote of no-confidence motion — and the derailment of the $6.5 billion International Monetary Fund (IMF) programme.—INP
