ISLAMABAD: Despite the general election held on February 08 this year, the International Monetary Fund (IMF) expressed concern over ongoing political uncertainty in Pakistan, ARY News reported on Sunday.
The IMF in its recent report, regarding the political scenario in Pakistan, expressed concern over the ongoing political uncertainty in the country.
The international money lender agency highlighted that despite a coalition government formed by the alliance of Pakistan Muslim League–Nawaz (PML-N) and Pakistan Peoples’ Party (PPP), the independent candidates affiliated to Pakistan Tehreek-e-Insaf (PTI) got more votes than other political groups during the general election 2024.
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Expressing concern regarding the major opposition formed by the PTI-backed members in the National Assembly, the report further stated that the recently formed government has vowed to continue the standby arrangement policies, however, the complicated political situation, inflation, and social tensions may affect the implementation of the policy reforms in the country.
The report warns that the non-implementation of economic policies and a decrease in external financing are likely to exert pressure on loans and exchange rates.
Furthermore, in the event of delays in external financing, there could be increased pressure on international banks to approve loans to the government of Pakistan.
Expressing concern regarding further reduction in financing capacity for the private sector, the report warned that factors such as fluctuating commodity prices, shipping disruptions, or tighter global financial conditions will affect external stability.
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