Pakistan on the verge of defaulting on Servicing it’s Foreign Debt

Pakistan needs an urgent inflow of US $ 4.5 billion to stave off defaulting on it’s foreign debt committments… It’s current reserves of US 6 billion are enough to just service imports for the next month and a half

It’s really quite amusing to note the Full Name of one of Pakistan’s Stock Exchanges… Islamabad Stock Exchange (Guarantee) Ltd… What Guarantee ?

The stock markets have collapsed in Pakistan and on more than one instance the Police and Paramilitary Forces have had to form a ring around the Karachi Stock Exchange to protect the Property as Investors lost heavily and resorted to stoning the Exchange and raising anti government slogans… Check out my July 19, 2008 Blog on this… For quick access to this July 19 blog you can use the Calender on the right or type Karachi Stock Exchange in the Search Feature of this Blog   

China,Saudi Arabia and USA , It’s financial supporters in the past,have all refused to lend to Pakistan

Pakistan’s only remaining hope is the International Monetary Fund (IMF)… frantic parlays are going on

If you recall in 1991, India too was down to just US $ 1.7 billion Fx Reserves that could pay for just a precarious seventeen days of imports at the time. Our PM, Dr Manmohan Singh, was our FM at the time and initiated reforms that began opening out India…. Even Inward Remittances Schemes were launched, with no questions asked to both Donors and Donees to attract black monies into the official system…..  our reserves today are a healthy US $ 275 billion… Then again our PM in the early nineties, late Mr Chandrasekhar, had pledged our Gold to borrow so we do not default on International Sovereign debt committments 

Tough Times call for Tough Measures… Perhaps it’s a great idea to extend our hand of friendship yet again to Pakistan and lend them our PM, Dr Manmohan Singh to advise them on how to move forward on this ! 

What a thought !

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