ISLAMABAD: According to an American credit rating company, Fitch Ratings, Pakistan would continue to rely on the effective execution of an IMF program and formal support from the organization for the foreseeable future, as The News reported on Thursday.
With elections taking place in almost half of Finch’s rated portfolio of Asia Pacific (APAC) sovereigns in 2024, including Pakistan where general polls are scheduled for February 8, the agency on Wednesday shared the possibility in its forecast report, mentioning the chance of election outcomes influencing credit profiles as being higher in both Pakistan and Sri Lanka, which also gets its funds from the IMF.
Elections are also scheduled to take place in Korea, Indonesia, Sri Lanka, India, and Sri Lanka.
“We view the chance of election outcomes influencing credit profiles as being higher in Pakistan and Sri Lanka, which both will remain dependent in the next few years on successful IMF programme implementation and official support,” said the projection.
It further stated that the impetus for reform has slowed down ahead of elections and that credit profiles may be impacted by the policy platforms of the incoming governments. But in most cases, the agency anticipates that the overriding topic will be policy continuity.
Additionally, Fitch said that there will be some uncertainty because of the election-related scenario. As per the agency’s research, the Asia-Pacific area is expected to withstand many obstacles by 2024, such as decelerating global GDP, elevated interest rates, ongoing geopolitical tensions, and persistent property-sector problems in china.
