The economic rating agency Fitch has predicted in its report on Pakistan that the current government will remain in place for 18 months. If the government changes, there will be no elections, technocrats will come, while PTI founder Imran Khan will remain under detention for the foreseeable future. If the current government ends, a technocrat government may come in Pakistan, protests in the cities of Pakistan may affect economic activities.
Fitch Business Monitor International has released the Pakistan Country Risk Report, which states that Pakistan’s economic recovery is facing a critical situation while the political situation might derail the economy. The current government will remain in power for the next 18 months or so and there will be no fresh elections in the country if the government changes. When the government ends, a technocrat government may come in Pakistan.
Lack of a strong electoral mandate to consistently implement difficult economic reforms might pose risks, Moody’s said
Fitch added in its report that independent candidates backed by jailed Imran Khan won big in February’s election, while protests in Pakistan’s cities might affect economic activity.
The pace of economic development in Pakistan is expected to be 3.5% this fiscal year
External payments pressure is an economic risk for Pakistan’s economy, while floods and droughts are economic risks for agriculture, the report said. The current government will carry out all the economic reforms in collaboration with the IMF.