Someone is taking a haircut on that debt, that is the stranding. Whether it’s Pakistan, the World Bank, or institutional investors, ¯\_(ツ)_/¯. They could forgive the debt instead, but humans gonna human.

Sovereign defaults are a thing, and sometimes necessary. It’s just numbers in a spreadsheet or database after all.

Institutions like World Bank, Asian Development Bank or IMF will not take any sort of cuts or deviations from the loan schedule.

International commercial investors won't also. They are also too many to negotiate with. Defaulting on those loans will send Pakistan's bonds and exchange rate into a tailspin.

That leaves other countries. US and Europe will not change loan terms either. So what has happened since 2018, is that Pakistan takes additional loans from China, UAE or Saudia Arabia to pay off other loans. If then Pakistan is unable to pay their loans backs, these countries reschedule payments into the future. But because of consistent refusal of the Pakistan state and elite to restructure and improve the economy has meant that even these countries have lost their appetite for help.