Credit rating agency Fitch has predicted in its report on Pakistan that Imran Khan will remain in detention and the current government will remain stable for the next 18 months.
According to Fitch, the inflation rate may decrease in Pakistan by the end of this fiscal year and the State Bank of Pakistan is expected to reduce the interest rate by the end of the fiscal year.
The Fitch report said that the State Bank is expected to cut the interest rate to 14 percent by the end of this fiscal year.
The government of Pakistan has set challenging economic targets in its budget, aiming to reduce the fiscal deficit from 7.4 percent to 6.7 percent.
According to the Fitch report, difficult economic decisions made by the government of Pakistan are paving the way for the IMF program.
External payments pressure is an economic threat to Pakistan’s economy, while floods and droughts are threats to Pakistan’s agriculture.
Fitch notes that independent candidates won significantly in Pakistan’s February 8 elections.
The winning independent candidates had the support of the founder of PTI. Economic activity may be affected by the protests in Pakistan’s cities.
Fitch predicts that the PTI founder will remain in custody and the current Pakistan Muslim League-Nawaz government will remain stable for 18 months.
Fitch further predicts that the current government will implement all economic reforms with the help of the IMF.
After the fall of the current government, a technocratic government will take over in Pakistan.
