Fitch warns Pakistan's political uncertainty may hinder efforts to secure a new IMF financing agreement.
Fitch warns Pakistan's political uncertainty following the close election outcome may hinder efforts to secure a new financing agreement with the IMF after the Stand-By Arrangement (SBA) expires in March 2024. A new deal is crucial for the country's credit profile and securing financing from multilateral and bilateral partners will be a top priority for the next government. Finalizing a new IMF deal may be challenging due to potential resistance from vested interests in Pakistan and tougher conditions, which could increase external liquidity stress and raise the probability of default.
February 19, 2024
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