Pakistan And Default

Default and it's Effects

A country defaults is when a country is unable to pay back its loans or debts and stops making payments to its creditors. It is a financial crisis that occurs when a country is unable to fulfill its obligations to repay its loans on time. This can lead to a decrease in the country's credit rating, making it harder for them to borrow money in the future.

This can happen when a country has taken on too much debt and is unable to generate enough revenue to service its debt payments. Defaulting on debt can have serious consequences for a country's economy and its reputation in the international financial community.

Pakistan After Default 

Pakistan is in very terrible economic situation and the danger of Default is around. Lets look at few scenarios that will happen after the default

Doller will cross 400 mark.

Petrol will cross 500rs per liter mark.

Petrol shortage will get severe in market for few months. There will be lines for hours outside petrol stations.

Government employees will stop getting salaries. Government will have no money to pay its employs.

Pensioners will not get pensions. Government will have not money to pay for pensions.

Government schemes will halt (Housing, Educational , health etc).

Every item that is imported will cease. There will be no money left to pay for imports because dollars are required.

Fuel and gas will be unable to import that will stop transportation, electricity and factories because of  dollar shortage.

Cost of Living will get sky high due to increase in prices of cereals, vegetables , fruits and wheat etc. This will happen because of import halt, supply chain block and high dollar rates.

Private sector employs will also get no salaries. Businesses will be in chaotic situation due to the default.

Withdraw cap will be applied on banking withdraws. Gov will set withdraw limit on your own money.  People will be unable to withdraw their own money from bank accounts. 

Electricity and Gas will get too costly Because of dollar rate and shortage of oil. There will be severe electricity loaf shedding.

No evening shifts due to electricity load shedding and high cost of electricity.

Real Estate will devalue.

Riots will take place. All of this will lead to restlessness.

Political instability will take place. There may be a charge or attack on politicians from the angry people.

What can we do to ease the situation

Store Grocery items of 2 to 3 (cereals, rice and food items etc) months in your house. So that you will have these items for some time when there is shortage or price hikes.

Convert Currency to dollar or any other stable currency so that your money will not devalue in default situation

Move to village or any other place where cost of living is low

Buy solar panels so that you can have electricity free of cost

Store medicines that are of daily use or the medicine that are critical for your health so that you would not have to worry if there is shortage of medicine.