Political uncertainty in Pak may mar IMF deal

Islamabad, Feb 19: The closely-contested outcome of the February 8 general elections in Pakistan and the ensuing political ambiguity may pose challenges to the nation’s efforts to secure a financing agreement with the International Monetary Fund (IMF), according to Fitch Ratings, according to a media report. Fitch warned on Monday that the uncertain political landscape in Pakistan could potentially complicate negotiations for a new financing deal, crucial for the country’s credit profile, The Express Tribune reported. Despite recent improvements in Pakistan’s external position, with the State Bank of Pakistan reporting net foreign reserves of $8 billion as of February 9, 2024, up from a low of $2.9 billion in February 2023, Fitch noted that these reserves remain low compared to projected external funding needs. (IANS)