We hear about companies too big to fail. I think that applies to Pakistan as in country with nukes.
https://www.bbc.com/news/world-asia-64449037
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Pakistan is holding last-ditch talks with the International Monetary Fund (IMF) to secure help to stem a deepening economic crisis that has all but emptied its foreign exchange reserves.
It has enough dollars to cover less than a month of imports at normal levels and is struggling to service sky-high levels of foreign debt.
An IMF team is due to leave the country on Thursday after 10 days of talks with the government aimed at unlocking vital international funds.]
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Don’t know what the answer is, sounds like there’s a pattern here
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As for bailouts, Pakistan is no stranger to them. The country - which has a massive military budget and years of debt-driven infrastructure spending - has long failed to wean itself off populist subsides and stabilise its economy.
"If you see the history of Pakistan, we have a cycle of balance of payments problems," says Dr Sajid Amin Javed, deputy executive director at the Sustainable Development Policy Institute in Islamabad.
"We go to the IMF. We implement very strict reforms, for two or three years, then it's an election year and unfortunately, we reverse them all."
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Quote:
But he adds: "In the long term the programme will have little to no impact. Pakistan faces a crushing debt burden. Without comprehensive debt restructuring, the country will keep landing up back at this spot, at the edge of a balance of payments crisis."
Trying to get a deal could mean painful political promises, potentially including dropping subsidies on energy.
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