Fitch, the credit rating agency, has predicted that Imran Khan, the founder of Pakistan Tehreek-e-Insaf (PTI) will stay in detention for a while longer. According to the Fitch report on Pakistan the current government led by PML-N expected to remain stable for the next 18 months.
The Fitch report on Pakistan also foresees a drop in the country’s inflation rate by the end of the fiscal year with the State Bank of Pakistan likely lowering interest rates to 14%. The Pakistani government has ambitious goals in its budget aiming to reduce the fiscal deficit from 7.4% to 6.7%.
The report mentions that Pakistan’s tough economic decisions paving the way for an IMF program. However, external payment pressures and agricultural threats from floods and droughts pose significant risks. The upcoming elections on February 8 seen notable success for independent candidates backed by the detained PTI founder. Potential city protests could impact economic activities.
The Fitch report on Pakistan predicts Imran Khan remain detained shortly. The current government expected to maintain stability for the next 18 months and collaborate with the IMF on economic reforms. Once the current administration’s term ends a transition to a technocratic government is anticipated.
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