ISLAMABAD: In its Pakistan report, Fitch Ratings has predicted that Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan will continue to be detained in the near future.
Additionally, Fitch predicts that Pakistan’s current PML-N-led government will maintain stability for the next 18 months.
Fitch also expects a potential decline in Pakistan’s inflation rate by the end of the current fiscal year, with the State Bank of Pakistan expecting to cut interest rates to 14% by the end of the fiscal year. 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 pave the way for the IMF program, with external payment pressures posing economic risks while floods and drought threaten Pakistan’s agriculture.
Regarding Pakistan’s February 8 elections, Fitch noted a significant victory for independent candidates, backed by the jailed founder of the PTI. Any protests in Pakistani cities could affect economic activities, he says.
Looking ahead, Fitch predicts that Imran Khan will remain in custody for the foreseeable future and that the current Pakistan Muslim League government will maintain stability for 18 months.
Fitch further suggests that the current government will work with the IMF to implement all economic reforms, with a transition to a technocratic government expected once the current administration ends.
