Fast-sinking rupee and debt woes push Pakistan towards bankruptcy

Islamabad: The risk that Pakistan could become the bankrupt state it was before a military coup nine years ago loomed larger yesterday as the rupee struck an all-time low and its debt was relegated deeper into junk bond territory. The six-month-old civilian government led by President Asif Ali Zardari is engulfed with crises left behind by former army chief General Pervez Musharraf, who resigned as president in August. On Monday, the rupee hit 78.65 per dollar. That took its loss this year to more than 21 per cent. The central bank has just enough foreign currency to... [read full story]