Fitch Solutions shared worrisome predictions for Pakistani economy, saying rupee is expected to reach Rs290 per US dollar by the end of the year and Rs310 by next year.
In its latest Pakistan Country Risk Report, the top rating agency highlights the fragile state of Pakistan’s economy, stressing that political unrest could hinder economic recovery.
The report also notes that urban protests have significantly disrupted economic activities and describes the political climate as fragile, predicting that former Prime Minister Imran Khan will likely remain in jail despite successful legal appeals.
The agency anticipates that the federal government will continue implementing IMF-mandated reforms, which are expected to help the economy grow by 3.5 percent in the fiscal year 2024-25.
It however warned coalition government to remain in power for the next 18 months, with no immediate plans for new elections.
Pakistan’s heavy reliance on imports and history of substantial current account deficits have led to significant external liabilities, including both official state debt and private debt owed by non-financial corporations.
Fitch sees Islamabad’s limited Foreign Exhcnage assets, apart from the State Bank’s reserves, and the depreciation of the rupee. It cautioned policymakers and international partners to avoid an acute debt crisis, Pakistan’s debt levels will stay high throughout the forecast period.
https://en.dailypakistan.com.pk/17-Jul-2024/imran-khan-to-stay-in-jail-govt-will-last-18-months-says-fitch
