Analysis: Pakistan marches toward an endgame of a deal or default

ISLAMABAD/LONDON, February 1 – The most obvious indication yet that Pakistan, a nuclear-armed country, risks defaulting unless it receives significant backing is the full-blown economic crisis the country is currently experiencing, from its largest-ever currency devaluation to a wave of emergency spending cuts.

The South Asian country, which was brought to its knees by last year’s terrible floods, now only has $3.7 billion in reserves, or just enough for three weeks’ worth of necessities, and elections are scheduled for November.