With Pakistan’s political situation still much in the air (the Supreme Court put off until tomorrow any ruling on the constitutionality of the prime minister’s dissolution of parliament and call for early elections), international financial vultures are throwing their weight behind the U.S. government’s drive to oust Prime Minister Imran Khan, by pumping out warnings that “political instability” will sink IMF negotiations and drive the country into bankruptcy.
Pakistani daily The Dawn dutifully retailed the warnings as proof that Pakistan cannot afford “worsening ties with U.S.” by refusing to oust Khan. Bloomberg News service, for example, is circulating a report to its financial clients warning that “Pakistan’s political upheaval is adding to a surge in the nation’s default risk and triggering off further losses in the nation’s bonds and currency.” Bloomberg, it reported, “pointed out that the ongoing political turmoil had already caused the Pakistani currency to sink,” by 5% this year already, according to Moody’s rating agency.
