The risk of default for Pakistan has significantly increased multiple times, according to Hammad Azhar, leader of the Pakistan Tehreek-e-Insaf (PTI) party and former Minister of Finance.
In a statement, Hammad Azhar expressed his concern over the growing threat of default for Pakistan. He highlighted that since the regime change, the rate of borrowing doubled.
Hammad Azhar stated that excessive borrowing led to a three-fold increase in the rate of inflation since the change in government. He further mentioned that the Pakistani currency depreciated by more than 100 rupees against the US dollar in a span of 14 months. This depreciation raised the risk of default for Pakistan.
He added that the current administration may have been engaging in a high level of borrowing to meet the financial obligations of the country.
Azhar’s comment highlights the growing concern about Pakistan’s economic stability and the risk of default. Defaulting on loans can have severe consequences for a country, including damaging its creditworthiness, increasing borrowing costs, and negatively impacting investor confidence.
The Pakistani government needs to address these concerns and take appropriate measures to stabilize the economy and reduce the risk of default. This may involve implementing fiscal reforms, improving governance, attracting foreign investment, and promoting sustainable economic growth.
The international community and financial institutions may also play a role in supporting Pakistan’s economic stability by assisting, offering financial advice, and encouraging policies that promote economic resilience.
Overall, the news underscores the urgency for Pakistan to address its economic challenges and work towards ensuring a sustainable and stable financial future.
