Abstract Pakistan’s situation in terms of the economy and security is wanting. The autumn capital crisis was an indicator of the bleak situation the country is in, in terms of repayment of its sovereign debt. This paper has therefore sought to carry out an analysis of the risk of default by Pakistan. Various sources of literature mainly from organizational reports and the news media provided the information for analysis to shed light on the default risk factor of Pakistan. The paper has comprehensively tackled both the security and economic situation of the country as far as sovereign debt repayment is concerned. Introduction For the last three to four years, Pakistan has faced a serious capital crisis that has seen the country’s economic fortunes plummet. The country, like its peers in the region, faces many security challenges internally, coupled with unstable neighbors such as Afghanistan that do little to encourage economic growth. Pakistan’s economy has experienced long periods of sound economic growth as well as negative growth cycles that have threatened the survival of the entire economy. The perennial security issues from militant groups have not augured well with investments that are critical to the country’s economic growth and balance of payments. The autumn of 2008, however, marked the peak of Pakistan’s economic woes forcing President Asif Ali Zardari’s government had to seek help from multilateral donors for an injection of capital that helped the country avoid default on its sovereign debt. Then, the IMF and the Pakistani government agreed on a loan of $7.6 billion to help it pay its external debt albeit in the short-term (Joyner, 2008). The assumption was that the economic situation will improve, and the country will be able to meet its economic and financial obligations in the longer term. Subsequent reports after the “bailout” have painted a rather grim picture about the country’s position on its ability to pay its sovereign debt. This research will focus on the analysis of Pakistan’s sovereign debt situation and the extent to which default is likely to occur. Hypothetically, many analysts believe the risk of a Pakistan default is still eminent despite noticeable progress in the areas concerned. To meet the above goal, the researchers used a clear hypothesis as highlighted in the section below. Additionally, there was a somewhat in-depth analysis of literature on the subject, methodology clarifying the study criteria, a discussion of the findings, a conclusion and a suggestion of areas the author feels give the basis for further research. Hypothesis The hypothesis that Pakistan is still plagued by economic problems that exacerbate its sovereign debt risk will be the basis of the study. To achieve this research’s objective, it is important to note that analysis of all literature on Pakistan’s debt default took place, and important conclusions were subsequently drawn. The purpose of this analysis will be to determine the Pakistani risk of default based on the current economic conditions. Methodology The analysis primarily focused on the review of secondary literature materials. The research carried out an in-depth review of available literature on Pakistan’s sovereign default status from the last decade to come up with the content in the literature review. It is important to note that most of the information came from published reports from organizations such as the International Monetary