If Pakistan gets Default what will happen?

 What Will happen if Pakistan gets Default in future?

If Pakistan defaults on its debt, it would have severe consequences for the country and its people.

What does defaulting means?

Defaulting on debt means that a country is unable to make payments on the loans it has taken out from other countries, international organizations, or private lenders. This can occur when a country has a high level of debt and is unable to generate enough revenue to cover the interest and principal payments.

What is most serious Consequence of being Default?

One of the immediate consequences of defaulting on debt is that the country's credit rating would drop, making it more difficult and expensive for the country to borrow money in the future. This could lead to a lack of investment and a decrease in economic growth. The country's currency may also depreciate, making imports more expensive and leading to inflation. 

Will there any legal action for being Default?

Another consequence of defaulting on debt is that the country may face legal action from its creditors. This could lead to the seizure of assets or the imposition of sanctions, further damaging the country's economy.

In the case of Pakistan, defaulting on debt could have additional consequences due to the country's ongoing tensions with neighboring India and its role in regional politics. A default could lead to a loss of support from other countries and international organizations, further isolating Pakistan on the global stage.

Defaulting on debt would also have a significant impact on the lives of ordinary Pakistanis. The country's already high poverty rate could increase, and access to basic services such as healthcare and education could become even more limited. The government may also be forced to make cuts to social programs in order to make debt payments, further exacerbating the situation. The oil prices will go up that will have negative impact on overall economy of Pakistan. As Pakistan produces approx 60% electricity through fernance oil, it will automatically add more miseries where local industry will collapse.

What will be impact on foreign Policy if Pakistan gets Default?

If Pakistan defaults, she will no longer be in a position to have independent foreign policy. They will be very much dependent on creditors as well as international players. Pakistan will have to sacrifice key assets that includes nukes as well. As a result of severe consequences, Pakistan will be forced to cut down large number of paramilitary force and reduce its defence budget.

How Pakistan can avoid Getting Default? What steps should Pakistan take to improve 8ts economy?

In order to avoid defaulting on its debt, Pakistan would need to take steps to improve its economy and increase revenue. This could include implementing structural reforms, such as reducing corruption and bureaucracy, and increasing foreign investment. The government would also need to address the country's ongoing energy crisis and improve infrastructure.

It's worth noting that defaulting on debt is a last resort option, and countries usually try to negotiate with their creditors to restructure their debt and find a solution that works for both parties. In the case of Pakistan, the government may seek assistance from international organizations such as the International Monetary Fund (IMF) to help restructure its debt and avoid default.

So Pakistan as country need to step up and do something extraordinary. They need to revamp their text collection system. Pakistan need to encourage new startups and motivate investors to invest in local industries. Hope my country will rise from ashes and things will settle down though it requires tremendous efforts.