Pakistan is not defaulting, it has already defaulted, asserted its Defence Minister Khawaja Muhammad Asif as the nation is going through its worst economic crisis. Asserting that Pakistani citizens are residents of a bankrupt nation, he called Pakistan a “diwaliya” nation.
Pakistan has experienced several instances of default on its external debt
Pakistan’s first major default occurred in 1971, following a war with India and the secession of East Pakistan, which later became Bangladesh. The country’s external debt at the time was relatively small, but the default had significant economic and political repercussions.
In 1998, Pakistan defaulted again after imposing nuclear tests, which led to international sanctions and a freeze on foreign aid. The default was relatively short-lived, however, as Pakistan was able to secure a bailout package from the International Monetary Fund (IMF) the following year.
Pakistan defaulted for a third time in 2002, during a period of political and economic instability, but was able to negotiate a rescheduling of its debt with its creditors.More recently, Pakistan has been grappling with a high external debt burden, which has raised concerns about the country’s ability to meet its debt obligations.
