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Reuters
Reuters
Business
By Marc Jones and Gibran Naiyyar Peshimam

Analysis: Pakistan moves toward deal-or-default endgame

FILE PHOTO: A currency broker stands near his booth, which is decorated with pictures of currency notes, while dealing with customers, along a road in Karachi, Pakistan January 27, 2023. REUTERS/Akhtar Soomro

Pakistan's full-blown economic turmoil, from its biggest ever currency devaluation to a rash of emergency spending cuts, offers the clearest sign yet that the nuclear-armed nation faces the risk of a default unless it receives massive support.

Pushed to the brink by last year's devastating floods, the South Asian nation has reserves of just $3.7 billion remaining, or barely enough for three weeks of essential imports, while hotly contested elections are due by November.

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