Current Government Expected to Last 18 Months; Imran Khan’s Early Release Unlikely: Fitch

Islamabad: International credit rating agency Fitch has stated in its report that the current government led by the Pakistan Muslim League-Nawaz (PML-N) is likely to remain in power for eighteen months. According to the report, if this government ends, a technocratic setup could follow, with the founding Pakistan Tehreek-e-Insaf (PTI) unlikely to return in the near future.
Fitch’s report further predicts that PTI’s founders may remain sidelined in the upcoming years. It notes that independent candidates supported by PTI founder were victorious in recent elections, but future demonstrations could impact economic activities.
The latest report from Fitch also warns of agricultural threats from floods and droughts in the coming years and suggests that tough budget decisions are smoothing the IMF program path. The rate of inflation could decrease by the end of the current fiscal year, and interest rates could reach up to fourteen percent.
The report adds that the government has set the most difficult economic goals in the budget because Pakistan aims to reduce financial losses from seven decimal four to six decimal seven percent.
Fitch sounded the alarm for the government, warning that the Nawaz League’s administration would last for 18 months, followed by the technocrats.