Will Pakistan Default?

The voices of "Pakistan will default" are not heard now but in April 2022. I don't see Pakistan defaulting. However, if somewhere it has been decided that Pakistan has to default this year, then the situation will be deliberate, dragged, and laboriously taken in that direction. There is never a shortage of internal traitors; external support is always available. But, head on, I don't think Pakistan will default just yet.

By the way, what happens if Pakistan declares bankruptcy? Will Indian forces enter the country? No. Will America use an atomic bomb to destroy us? No. So what happens then? 146 countries have defaulted on their debts so far. Recently, Sri Landa declared default. Spain experienced more than ten defaults before 1949. In the last 20 years, Russia, Greece, North Korea, and Venezuela declared themselves in default, and they are still present on the world map.

The consequences of a country defaulting on its debt can be severe and far-reaching. Some of the possible consequences include the following.

• The downgrade of credit rating: A default can result in a downgrade of the country's credit rating, making it more difficult and expensive to borrow money in the future.
• Higher borrowing costs: If a country defaults on its debt, lenders will demand higher interest rates to compensate for the increased risk, making it more expensive for the country to borrow money in the future.
• Currency devaluation: A default can lead to a decline in the value of a country's currency, which can make imports more expensive and lead to inflation.
• Loss of investor confidence: A default can damage the reputation of a country, making it less attractive to foreign investors and reducing their willingness to invest in the country.
• Political instability: A default can lead to political instability and social unrest as citizens face higher taxes, reduced public services, and economic hardship.
• Legal action by creditors: Creditors may take legal action to recover their losses, which can result in the seizure of assets or the imposition of economic sanctions.

If Pakistan defaults, it takes two and a half to three years to get back on track, and it can take up to ten years to wash away the stain of default. The sanctions imposed on Pakistan for the past two decades are many times more severe than the sanctions that may be imposed after a God-willed default. What has happened? Pakistan will therefore continue to exist on the world map even if it defaults on its debt. What will the internal situation be now?

The nation will experience riots, which could last for a month. There will be chaos, which could last for up to a year. First of all, no one will lend you money anymore. Your credit rating will suffer. It is possible that the countries in the world from which you have taken loans and their repayment dates have come and gone, putting your assets at risk.

To avoid default, you must turn to organisations like the IMF and the World Bank, which will grant you loans at extremely high-interest rates. There will be an incredible storm of inflation in the country; the dollar will be more than 375; there will be a shortage of petrol, and what is found will also be available for up to 350 rupees per litre. According to estimates, the cost of electricity may exceed Rs 85 per unit. There's a chance of an 18,000-point stock market crash. Today the stock market is between 38 and 40 thousand points, and one market point is worth 25 crore rupees. There may be a food shortage, but famine won't result from it. We were once an agricultural country. Then the builder mafia laid a trap for housing societies. High-rise buildings can be found in major cities all over the world, but the land of Punjab has been devoured by the builder mafia. He did not build the high-rise, but the one who builds the high-rise campaigned against it. In the event of default, Pakistan's real estate market will crash. There will be an agricultural crisis.

It is estimated that if the community's LC is not opened in time, we can get up to Rs. 900 per kg in the coming Ramadan because we produce only 30% of our required dal in the country and the rest is exported at more than 70%. The nation will be without electricity for 18 hours. The country's imports will end and exports will have to be reduced. However, even after that, Pakistan will survive. There will be no doomsday scene here. Pakistan survived even after the nuclear blasts. Pakistan survived the tragedy of 1971, and also survived the Zardari ear. Zardari era was "mini-default" period.

May Allah not let Pakistan default. The possibility of establishing a national government for three years is expected. After that, a census should be conducted and new elections should be held or a technocratic government in the country may be established and should take over the work of the national government. If there is any help from the World Bank or any other side, then the current setup shall continue until the next elections; otherwise, the situation may be even tougher.