Without a bailout from the International Monetary Fund, Pakistan may default for the second time in its history.
Soaring inflation. Squabbles over fuel prices. A fractious political environment. For months, Pakistan has struggled to keep its economy afloat, raising the prospect that one of the world’s most populous nations could soon follow Sri Lanka in a wave of potential global defaults.
Investors are getting nervous. Without a bailout from the International Monetary Fund, Pakistan may default for the second time in its history. As talks with the IMF conclude Wednesday in Doha, officials acknowledge that winning a loan from the multilateral lender might involve trade-offs, including the politically tough decision of raising fuel prices.
“We are confident we’ll get to the finish line”, Murtaza Syed, acting governor of the State Bank of Pakistan, said in an interview with Bloomberg TV on Tuesday....
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