The closely-contested outcome of the February 8 general elections in Pakistan may pose challenges to the nation’s efforts to secure a financing agreement with the International Monetary Fund (IMF), according to Fitch Ratings. The uncertain political landscape in Pakistan could complicate negotiations for a new financing deal, crucial for the country’s credit profile, Fitch warned on Monday as reported by The Express Tribune. Despite recent improvements in Pakistan’s external position, with net foreign reserves of $8 billion as of February 9, 2024, up from a low of $2.9 billion in February 2023, Fitch noted that these reserves remain low compared to projected external funding needs. The agency estimates that Pakistan met less than half of its $18 billion funding plan in the first two quarters of the fiscal year ending June 2024, excluding routine rollovers of bilateral debt.
The political ambiguity following Pakistan’s recent general elections could potentially complicate negotiations for a new financing deal with the International Monetary Fund (IMF), according to Fitch Ratings as reported by The Express Tribune. Despite improvements in Pakistan’s external position, the uncertain political landscape may pose challenges to the nation’s efforts to secure a financing agreement. The State Bank of Pakistan reported net foreign reserves of $8 billion as of February 9, 2024, up from a low of $2.9 billion in February 2023. However, Fitch noted that these reserves remain low compared to projected external funding needs, and the agency estimates that Pakistan met less than half of its $18 billion funding plan in the first two quarters of the fiscal year ending June 2024, excluding routine rollovers of bilateral debt.
The political ambiguity in Pakistan following the general elections could potentially complicate negotiations for a new financing deal with the International Monetary Fund (IMF), according to Fitch Ratings as reported by The Express Tribune. Fitch warned that the uncertain political landscape in Pakistan could potentially complicate negotiations for a new financing deal, crucial for the country’s credit profile. Despite recent improvements in Pakistan’s external position, with net foreign reserves of $8 billion as of February 9, 2024, up from a low of $2.9 billion in February 2023, Fitch noted that these reserves remain low compared to projected external funding needs. The agency estimates that Pakistan met less than half of its $18 billion funding plan in the first two quarters of the fiscal year ending June 2024, excluding routine rollovers of bilateral debt.
