By Staff Report
Fitch, the credit rating agency, predicts in its report on Pakistan that Imran Khan, the founder of Pakistan Tehreek-e-Insaf (PTI), will continue to be in detention in the near future.
Additionally, Fitch forecasts that Pakistan’s current government led by PML-N will maintain stability for the next 18 months.
Fitch also anticipates a potential decrease in Pakistan’s inflation rate by the end of the current fiscal year, with expectations that the State Bank of Pakistan will lower interest rates to 14% by fiscal year-end. The government of Pakistan has set ambitious economic targets in its budget, aiming to reduce the fiscal deficit from 7.4% to 6.7%.
The Fitch report highlights that Pakistan’s challenging economic decisions are paving the way for an IMF program, with external payment pressures posing economic risks while floods and droughts threaten Pakistan’s agriculture.
Regarding Pakistan’s February 8 elections, Fitch notes significant success for independent candidates, supported by the incarcerated PTI founder. Potential protests in Pakistan’s cities could impact economic activities.
Looking ahead, Fitch predicts that Imran Khan will remain under detention in the near term, and Pakistan’s current Muslim League government will sustain stability for 18 months. Fitch further suggests that the current government will collaborate with the IMF to implement all economic reforms, with a transition to a technocratic government expected once the current administration concludes.
