Islamabad, May 12, 2024 : Following the February 8th general election, the International Monetary Fund (IMF) has voiced concerns regarding the persistent political uncertainty in Pakistan.
In its latest report on Pakistan’s political landscape, the IMF expressed worry about the continued political uncertainty in the country.
Despite the formation of a coalition government by the Pakistan Muslim League–Nawaz (PML-N) and Pakistan Peoples’ Party (PPP), the IMF noted that independent candidates associated with the Pakistan Tehreek-e-Insaf (PTI) received more votes than other political factions during the 2024 general election.
The report expressed concern about the significant opposition led by PTI-backed members in the National Assembly. It noted that while the newly formed government has pledged to uphold standby arrangement policies, the complex political landscape, inflation, and social tensions might impede policy reform implementation.
Highlighting the risk of non-implementation of economic policies and a reduction in external financing, the report cautioned about potential pressure on loans and exchange rates.
Additionally, it warned of heightened pressure on international banks to approve loans to the Pakistani government in case of delays in external financing.
The report expressed worry about a potential decrease in financing capacity for the private sector. It cautioned that factors like fluctuating commodity prices, shipping disruptions, or tighter global financial conditions could impact external stability.
