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Upcoming govt faces IMF pressure regardless of election outcome: Bloomberg

ISLAMABAD (PEN) : Following the general elections scheduled for February 8 across Pakistan, the looming specter of economic challenges awaits whichever government assumes power, as international financial experts warn of an impending need to engage with the International Monetary Fund (IMF).

A recent report by the esteemed international journal Bloomberg has underscored the imminent need for Pakistan’s incoming government to swiftly approach the IMF, especially considering that the current IMF program is set to conclude in March. The report emphasizes that the new government will be tasked with the challenge of returning $25 billion within a year, highlighting the urgency of the situation.

Despite economic challenges, there have been notable developments in Pakistan’s financial landscape. Bloomberg’s analysis reveals that Pakistan’s bond market has exhibited stability, experiencing a 9% stabilization in January. Additionally, the price of Pakistan’s bonds saw a remarkable 100% increase throughout 2023, reflecting investor confidence in the market.

Investors are closely monitoring the outcomes of the forthcoming elections in Pakistan, with the political landscape expected to impact market dynamics. Moreover, Pakistan’s $1 billion bond in the international market is set to mature in April, adding to the financial considerations for the incoming government.

As Pakistan navigates through economic complexities, the government’s response to these challenges will be crucial in shaping the country’s financial trajectory in the months ahead. The report by Bloomberg serves as a reminder of the imperative for proactive measures and strategic economic policies to address the nation’s fiscal needs effectively.