Another bad news for the beleaguered Pakistani economy. After a sharp decline in foreign exchange reserves, Pakistan is also becoming unable to repay its loans. Its economy faces substantial credit risk. Meanwhile, New York-based global rating agency Fitch has warned that Pakistan could soon become a loan defaulter if the situation does not improve.
In its report, Fitch said that loan default is a real possibility. Fitch downgraded Pakistan's long-term foreign currency issuer default rating (IDR) to 'CCC-' from 'CCC+'. This means that its liquidity and policy risks have further deteriorated.
Pakistan's crisis deepens
Fitch said the downgrade reflects a sharp deterioration in external liquidity and funding conditions. Pakistan's foreign exchange reserves have seen a major decline in the recent past. Fitch has said in its report that the situation does not look very pleasant, especially in the fourth quarter of 2022, given the falling reserves, large-scale decline, current account deficit (CAD), external debt, and foreign reserves of the Central Bank of Pakistan. Quarterly.
Risk of becoming a loan defaulter
The agency said that Pakistan's foreign exchange reserves are expected to remain at a low level. However, due to the anticipated currency inflows and the recent removal of the exchange rate cap, there is scope for improvement in the remaining months of FY23. Fitch said it expected Pakistan to complete the ninth review of the International Monetary Fund (IMF) program.
Pakistan on the brink of disaster
Pakistan has been grappling with instability in recent days stemming from an economic crisis, last summer's devastating floods, and an increase in terrorist attacks across the country. A significant USD 1.2 billion portion of the 2019 bailout was stuck since December last year. IMF urged Pakistan to raise more cash.
Pakistan held ten days of intense talks with the IMF delegation in Islamabad, but could not reach an agreement. The IMF and the Pakistan government resumed talks virtually on Monday, hoping to reach an agreement soon. Will give impetus to the country's sick economy.
Pakistan's foreign exchange reserves stood at around US$2.9 billion as of February 3, according to estimates by the country's central bank, which was not enough even for three weeks of imports.
IND vs SL: Mohd, who hunted five 'Sri Lankan lions' in a single match. Shami created another history in the World Cup
Mohammed Shami World Cup Wicket: Indian fast bowlers wreaked havoc at Wankhede Stadium. Bumrah gave success to India on the very first ball of the first over. After this, Siraj destroyed the top order
Pakistan: Finally Pakistan bowed before IMF for a loan, the bill passed to meet demands
To avoid bankruptcy, Pakistan was finally forced to bow down to the International Monetary Fund (IMF). Today the National Assembly of Pakistan unanimously passed a money bill to meet the demands set
Ujjain Rape Case: 72 hours ... 1000 CCTV footage ... five accused arrested; How to set up a rape case with a solved girl?
Ujjain Rape Case: A case of embarrassing humanity has come to light in the city of Baba Mahakal, which shook the whole country. A 12 -year -old minor girl is raped here. The girl wanders from rate to
Delhi Murder Case: On the third day of marriage, the truth of the murder of the girlfriend was told to the wife, who said- 'You go to your home
Nikki Yadav Murder Case: When there was no contact with daughter Nikki for two days, father Sunil went out in search of her. He also reached the house of the accused Sahil. When pressure was made on
Poacher Trailer Release: Interesting story of ivory smuggling 'Poacher', the trailer of Alia Bhatt's series released
Poacher Trailer Out: The investigative crime thriller series Poacher, directed by Emmy Award winner Richie Mehta, has been in the headlines since its announcement. The story of ivory smugglers is
Vikas Bharat Sankalp Yatra: PM Modi will talk to the beneficiaries today, Union Ministers-MPs will also participate
Prime Minister Narendra Modi will interact with the beneficiaries of 'Vikas Bharat Sankalp Yatra' through video conference on Monday. The Prime Minister's Office has issued a statement giving this
Gyanvapi ASI Survey: The survey of ASI in Gyanvapi will be completed in 15 days, the truth of Shivling-like shape will come to the fore!
The ASI team will start with the survey topography on Friday morning on the Gyanvapi campus. In the first phase, a map of the entire campus will be prepared in two to three days. Its geographical
PM Modi addressed the meeting of G-20 Foreign Ministers, said- Many countries are facing the sad consequences of failed misgovernance
Prime Minister Narendra Modi addressed the meeting of G-20 Foreign Ministers on Thursday. During this, he said, "I welcome you to India for the G20 Foreign Ministers' meeting. This indicates the need
Today is the second day of President murmu's visit to Arunachal Pradesh: will address the special session of the state assembly
President Draupadi Murmu will address the special session of the Arunachal Pradesh Legislative Assembly on Tuesday. Confirming this, Assembly Secretary K Habung said that she is going to address the
US: India is playing an 'important role' globally, officials gave statement before PM Modi's US visit
America is ready to welcome Indian Prime Minister Narendra Modi. Meanwhile, President Joe Biden's top official for the Indo-Pacific region said on Tuesday that he hoped that PM Modi's visit would