Earlier, the U.S credit rating agency, Standard and Poor's, on Jul. 13 downgraded Pakistan's rating card, to below Indonesia's, and warned that the country could default on debt repayments within this fiscal quarter. Prime Minister Sharif said it would prevent a panicked flight of capital, but according to ex-finance minister Dr. Mubashar Hassan, an outspoken campaigner for peace in the subcontinent, the government jeopardised the country's financial policies. The Pakistani rupee has taken a real battering against the mighty U.S dollar to which it is pegged, also because of the waning clout, during the same period, of the Japanese yen. Aid for the social sector is not barred. In order to fill the gap in funds, Prime Minister Sharif and his officials have been travelling to friendly countries like the Gulf states to seek assistance for a financial bailout.
China is also on the prime minister's travel list.
An assurance of support has been made by Saudi Arabia's King Fahd, officials say, but none of the Gulf states, loyal allies of the United States, have given solid commitments.