Why crisis-hit Pakistan won’t go the Lanka way

There are a few factors that might prevent an all-out collapse like we saw in Sri Lanka. First, Pakistan has been here before. Many times, in fact.  Pakistan has sought financial aid from the UAE, China, and the IMF in 2013, 2016 and 2018.  Second, the international community is wary about a Sri Lanka styled economic and political collapse in a nuclear armed country. The threat of rogue players gaining access to nukes often makes lenders a lot more lenient in issuance of fresh loans and repayment terms. Third, Pakistan has more generous friends. Pakistan received a loan from Saudi Arabia and recently, the UAE government has offered to acquire 10 to 12 per cent equity shares in Pakistan government-owned companies through its sovereign wealth funds.