Default threat reaches Pak as inflation rises, political crisis worsens

Without a bailout from the International Monetary Fund, Pakistan may default for the second time in its history amidst inflation at its peak.

Soaring inflation. Squabbles over fuel prices. A fractious political environment. For months, Pakistan has struggled to keep its economy afloat, raising the prospect that one of the world’s most populous nations could soon follow Sri Lanka in a wave of potential global defaults.

Investors are getting nervous. Without a bailout from the International Monetary Fund, Pakistan may default for the second time in its history. As talks with the IMF conclude Wednesday in Doha, officials acknowledge that winning a loan from the multilateral lender might involve trade-offs, including the politically tough decision of raising fuel prices.

“We are confident we’ll