According to the U.S. network TV, the "balance of payments" crisis is undermining living standards in a country still reeling from last year's devastating floods. It could "reverse poverty gains made over the past two decades and further reduce incomes for already poor households," the World Bank warned last month.

Widespread protests have added to the pain. With the government's credibility at a new low and public anger growing, investors believe it is unlikely that reforms called for by the IMF to improve the country's fiscal situation will be adopted, as they would contribute to economic difficulties shortly.

Moody estimates Pakistan's external financing needs for the fiscal year 2024, which begins in July and runs through June next year, at $35 billion to $36 billion.