IMF Highlights Post-Election Uncertainties and Economic Risks Facing Pakistan

In its recent article about Pakistan IMF has raised concerns regarding the ongoing political instability and economic challenges being faced by Pakistan as a result of the general elections held in recent months. The IMF report has mentioned the achievements of PTI-affiliated independents in the election whereas on the other hand appreciated PML-N and PPP for forming a new coalition government.

In the report, there is speculation about the continuation of the stand-by arrangement policy saying that it might have to face difficulties in its effectiveness because of complex politics, high inflation rate, social instability, and urgent policy reforms. According to IMF the possible fall in impact of policy interventions, reduced external financing, increased pressure on exchange rate and various another economic risk can put the economy in danger.