Pakistan is currently going through an economic and political crisis. Meanwhile, global rating agency Moody’s has reduced the credit rating of Pakistan. Moody’s report says that due to the ongoing political crisis in Pakistan, it may have to face a serious economic crisis. Also, the incoming government will have a big challenge to rescue the country from serious economic crisis. Moody’s has claimed that due to political uncertainties, it will be difficult for the new government of Pakistan to approach the International Monetary Fund (IMF) for a new loan in April as it already has a debt of $ 49.5 billion. p style="text-align: justify;">IMF had given a loan of 3 billion dollars to Pakistan in the month of June last year, whose nine-month period is now ending. On the other hand, Pakistan again needs a big loan for financial help. Moody’s has sounded the alarm bell for Pakistan and said that Pakistan’s coffers may be empty by April. Due to this, Pakistan’s economy will further break down, which will become very difficult for it to handle.
Pakistan’s credit rating dropped
Moody’s has dropped Pakistan’s borrowing credit rating. Its rating has been reduced from CAA1 to CAA3, which is just 2 notches above the default. This claim of Moody’s is an alarm bell for Pakistan because the country’s economy is running only with the help of IMF loan. Pakistan had got loan from IMF only in 2023, but with the beginning of 2024, it will need loan again.
The value of Pakistani rupee also fell, equal to 30 paise of India.
The condition of Pakistani rupee has also worsened. Its value is falling day by day. One rupee of Pakistan is equal to 30 paise of India and the value of one US dollar has reached 277 of Pakistan. Islamabad’s think tank Tab Ad Lab has also prepared a report on the situation in Pakistan and said that in such a situation, the country’s economy will sink deeply and Pakistan will move towards default. It will be difficult for Pakistan to come out of this maze. Its economy is surrounded from all sides.
The report says that unless there is a major improvement and dramatic change in the current situation, Pakistan will sink deeper. This condition has happened because of the political parties of Pakistan. These leaders have left no stone unturned in looting the country. Pakistan’s debt has increased so much that it has to reach out to other countries to pay the interest.
Pakistan has to repay a debt of 49.5 billion dollars in 2024
Since 2011, Pakistan’s foreign loan has almost doubled, while the domestic debt has increased 6 times. Last year itself, Pakistan had received 3 billion dollars help from IMF, which is now ending. According to Pakistani newspaper Dawn, Moody’s assessment of the situation after the Pakistan elections is a sign of concern for the new government. Moody’s said that political instability will remain no matter which government is formed there. Moody’s said that Pakistan has to repay a debt of about $ 49.5 billion in 2024. 30 percent of the entire amount is the interest on Pakistan’s loan.
There is not only economic crisis in Pakistan, there is also political instability. General elections were held here on February 8, but till now the government has not been formed. However, on Tuesday (February 20, 2024), Pakistan Peoples Party (PPP) and Pakistan Muslim League-Nawaz (PML-N) have agreed to form a coalition government."text-align: justify;">Also read:-
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