In a world drowning in debt, here come the cascading defaults. Sorry, central banker scum, you won’t be able to print this away.
Soaring inflation. Squabbles over fuel prices. A fractious political environment. For months, Pakistan has struggled to keep its economy afloat, raising the prospect that one of the world’s most populous nations could soon follow Sri Lanka in a wave of potential global defaults.
Investors are getting nervous. Without a bailout from the International Monetary Fund, Pakistan may default for the second time in its history. As talks with the IMF conclude Wednesday in Doha, officials acknowledge that winning a loan from the multilateral lender might involve trade-offs, including the politically tough decision of raising fuel prices.