Huh, finally i got the time to talked about it after a lot of reaserches. Pakistan which is now trending in news for being default or going to be.
First, let’s just learn what it actually mean.
Why a country default, what it means ?
A country default when a it is not capable to pay back it’s debt. The Pakistan Central Bank is left over with only $3.1 billion foreign exchange reserve, which can hardly cover the import of few months .
But the question is that how much debt it have ?
Pakistan is to return around $80 billion in foreign debt in upcoming time .
What if it gets default ?
If Pakistan’s default it wouldn’t be able to pay off commercial loans.
As the inflation is at peak but in upcoming time it would be skyrocketed. The continuous devaluation of Pakistani rupee (pkr) against dollar has collapse the economy.
Today the value of $1 is 278.56 pkr .
Now, in all of this what about the people of the country . Will they be able to survive ? Are they employed? Are they going to have three meal of the day or will even survive for one meal? How are they surviving today and will they be able to survive in upcoming time ? Are they able to afford their monthly expenses? What about daily- wager ?
These aren’t enough there many more like this which all of the Pakistanis have .
Now , the unemployment rate of Pakistan is 6.40% and it’s going to be increased in the following years .
How it will get out off it
For that , it needs to pay back their loans ( slowly but they had to) and to promote exports . Need to change their policies, should encourage small businesses, industries, and other businesses too .
But as a Pakistani, i would suggest people to save their money for rainy days and try to limit their expenses too .
And want to suggest people that don’t ever think to hoard things in fear of getting short .
It’s a difficult phase but we had to tackle with it .
I don’t know if you guys will like me talking about such topic but if you want then do let me know .
