After Sri Lanka, Pakistan on the verge of loan default

New Delhi, July 9

After Sri Lanka and Zambia defaulted on their sovereign reserves and are also left with no forex reserves, Pakistan could be among the next lot of countries to face a difficult time, according to international rating agencies.

Turkey, Egypt, Tunisia, Ethiopia, Pakistan, Ghana and El Salvador are in immediate danger of being unable to repay debts, according to Bloomberg which expects a cascade of defaults among emerging markets due to rising energy and food prices and global interest rates.

Fitch Ratings on the other hand has identified 17 countries, including Pakistan, that could be on the verge of default. Russia has been included in the list because despite having the money it has been unable to pay its foreign creditors as the US Government has barred entities from accepting money from Moscow.

While Sri Lanka and Zambia are the most well known cases, the other countries teetering on the edge of a sovereign loan default are Pakistan, Lebanon, Tunisia, Ghana, Ethiopia, Ukraine, Tajikistan, El Salvador, Suriname, Ecuador, Belize, Argentina, Russia, Belarus and Venezuela.