Fitch Predicts Possibility of Technocrat Setup in Pakistan
Global credit rating agency, Fitch, has made some interesting predictions regarding the political and economic situation in Pakistan.
The agency’s report suggests that in the event of the ousting of the Pakistan Muslim League-Nawaz (PML-N) government, there may be a technocrat setup in the country.
While Fitch expects the current government to stay in power for the next 18 months without holding fresh elections, it also foresees continued implementation of IMF-mandated reforms to stimulate economic growth.
However, the agency warns that political turmoil and climate change impacts could disrupt economic activities in Pakistan.
Additionally, Fitch speculates that Imran Khan is unlikely to be released from jail soon and predicts the next general elections in 2029.
On the economic front, a projected 1% current account deficit in FY2024/25 is expected, with the State Bank of Pakistan potentially reducing its key policy rate from 22% to 16% in 2024.
Meanwhile, a recent staff-level agreement between Pakistan and the IMF is seen as a positive development by Moody’s, offering much-needed funding prospects for the country.
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