Pakistan has just six days before its dwindling foreign-exchange reserves run out, the Foreign Minister told his German counterpart, Frank-Walter Steinmeier, on Tuesday.
One can not imaging the problems of Pakistan going broke.
http://www.newsweek.com/id/163349
China has said it will not allow them to default on there loans.
http://www.npr.org/templates/story/story.php?storyId=96261522
"Because they've borrowed in foreign currency [and] their income is in domestic currency ... if the foreign currency goes way up, it makes the debt burden impossible."
"If you just look at a country like Turkey or Brazil, both of whom are having difficulties, the kind of number one might need is a hundred billion or more," says former IMF economist Rogoff, who is now at Harvard University. "The IMF is not in a position to come in with overwhelming force. It really can't stop the panic by itself."
With turkey in talk now it is clear the IMF Cash reserve is quickly looking like it will dry soon. Pakistan can not last over 6 days per its government. IMF wants it to cut defense spending and government spending both of which will sink the current government. Rock and Hard place comes to mind, expect the one in the middle has nuclear weapons.
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