Pakistan - BANKRUPT!

Discussion in 'Political Discussion' started by Holy Diver, Oct 7, 2008.

  1. Holy Diver

    Holy Diver Pro Bowl Player

    Sep 13, 2004
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    #80 Jersey


    Pakistan facing bankruptcy - Telegraph

    The UK's Daily Telegraph reports that Pakistan may be the first nation to go bankrupt as a result of the continuing global financial meltdown.

    Officially, the central bank holds $8.14 billion (£4.65 billion) of foreign currency, but if forward liabilities are included, the real reserves may be only $3 billion - enough to buy about 30 days of imports like oil and food.

    Nine months ago, Pakistan had $16 bn in the coffers.

    The government is engulfed by crises left behind by Pervez Musharraf, the military ruler who resigned the presidency in August. High oil prices have combined with endemic corruption and mismanagement to inflict huge damage on the economy.

    Pakistan's foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy.

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