Singapore February 9 2024: A timely announcement of Pakistan’s election results, leading to a smooth formation of a new government will reduce policy and political uncertainty, according to Moody’s Investors Service.
“This is crucial for the country that is facing very challenging macroeconomic conditions, with fragile balance of payments, weak growth and high inflation,” says Grace Lim, analyst at Moody’s in Singapore
The new government will need to negotiate for another IMF program, after the current one expires in April 2024
Even under a new IMF program, the new government will be tested on its willingness and ability to implement and sustain reforms, particularly revenue-raising measures, that may be politically unpopular, but necessary to improve macroeconomic conditions.
