The report of being default with reference to Pakistan are the part of media for about a year and common Pakistanis are asking the question to each other that what will happen in case the country defaults. As a matter of fact, the countries which default have to face the severe economic and political consequences.
Default is the situation when a country is unable to make the payments on loans which it took from international and private lenders.
The severe consequences of being default include zero position of countryÂ’s credit rating. It means the Foreign Direct Investment (FDI) to that country comes down to extremely low level, causing the fall in economic growth.
In case of Pakistan, it has already been facing historically high inflation and day-to-day depreciation in the value of rupee against US dollar.
The other effect of default is the legal action from the countryÂ’s creditors which may be of different kinds that may harm countryÂ’s political position.
In case, Pakistan defaults, the lives of common people will be badly affected who are already finding no way to live peacefully. Poverty rate is increasing with high speed, price hike in all the commodities of daily needs such as vegetables, beef, chicken, pulses, oil etc. is on upwards movement.
Necessary services like healthcare and education have gone out of reach of the common Pakistani. The rates of electricity, gas and petrol are also going high.