The close outcome of Pakistan’s elections and resulting near-term political uncertainty may complicate the country’s efforts to secure a financing agreement with the International Monetary Fund (IMF), to succeed the Stand-By Arrangement (SBA) expiring in March 2024, says Fitch Ratings. “A new deal is key to the country’s credit profile, and we assume one will be achieved within a few months, but an extended negotiation or failure to secure it would increase external liquidity stress and raise the probability of default,” the Rating Agency added. Pakistan’s external position has improved in recent months, with the State Bank of Pakistan reporting net foreign reserves of $8 billion as of 9 February 2024, up from a low of $2.9 billion on 3 February 2023. (Business Recorder)
20/2/2024