Hellow guys, Welcome to my website, and you are watching How Can Pakistan Avoid Default? | MoneyCurve | Dawn News English. and this vIdeo is uploaded by DawnNews English at 2022-12-11T23:29:41-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | How Can Pakistan Avoid Default? | MoneyCurve | Dawn News English |
| Video Uploader | Video From DawnNews English |
| Upload Date | This Video Uploaded At 12-12-2022 07:29:41 |
| Video Discription | Is Pakistan heading towards a default? That’s a thought that has penetrated our world both digital and real. With the state bank of Pakistan’s foreign exchange reserves falling to a near low of four-years and a delay in securing IMF tranche, the rumour mill is abuzz that Pakistan may not be able to pay back its loans. We’re back to seeking funds from friendly nations. But even that is taking time and the wait is adding fuel to the fire of default chatter. But before we go further, we first need to understand what exactly it means to default. What is default? In simple terms, default or sovereign default as it is called in case countries, is a country’s inability to repay creditors the principal amount or interest on loans. To help understand the process consider taking a loan of Rs. 100,000 and promising your creditor to repay the amount in 12 months. Now, 12 months have passed but you don’t have the amount to repay the loan. And so, you default on your payment. The most recent example of a country defaulting is Sri Lanka. For the first time in its history, the island nation defaulted on its debt when it failed to pay $78 million worth of debt interest Now that we know what default is. Let’s talk about happens when a country defaults. Bankruptcy triggers a cascading effect. When a country defaults, its government and institutions suffer immediate loss in legitimacy amongst its own people as well as international lenders. When countries have a poor credit rating, it’s hard for them to raise debt. Then comes the devaluation of currency, and the stock market also crashes as Many people tend to withdraw their deposits from foreign exchange savings leading to domestic banks facing a liquidity crunch. Now, the bigger problems come for those in trade. Exporters and importers are no longer able to take credit which then slows down the industry. Consequently, people lose jobs and unemployment rates shoots up. Here’s where it gets a little different between when a country defaults as opposed to a person defaulting. For countries, all is not lost for creditors. Countries never go out of business. But defaulting means less creditors are willing to trust your ability to repay. So due to risk of another default, they charge you higher interests to protect their money. Now that we’ve got basics about default sorted. Let’s talk about Pakistan’s economic situation. Are we really heading towards a default? __________________________________ IN THIS VIDEO 00:00 - what is default? 1:24 – what happens when a country defaults? 2:38 – Ariba Shahid on Pakistan’s economic situation 5:45 – Uzair Younus on whether Pakistan is going to default 10:00 - What can Pakistan do to avoid default? __________________________________ Official Facebook: https://www.facebook.com/dawndotcom/ Official Twitter: https://twitter.com/dawn_com Website: www.dawn.com Official Instagram: https://www.instagram.com/dawnnewsenglish #dawnnewsenglish #dawnnews #dawn #pakistan #pakistannews #englishnews #businessnews #news |
| Category | News & Politics |
| Tags | dawn news english | dawn news | dawn | news | dawn news tv | dawn news live | dawn live | business news | current affairs | english news | economy news | political news | pakistan | dawn english | pakistan news | pakistan default | pakistan economy | pakistani economy | ishaq dar | imran khan | shaukat tarin | ariba shahid | uzair younus | default | broken economy |
