The international credit rating agency, Fitch, suggested that Pakistan will need the IMF program in the coming years.
According to Fitch’s report on the Asian economy, it is mentioned that Pakistan’s economy has strengthened due to the IMF program, and staying in the IMF program could further improve its rating.
The report states that Pakistan’s rating had improved significantly after the loan program with the IMF. It further mentions that 2024 is an election year for many Asian countries, including Pakistan. Due to elections, several countries are facing uncertain situations, and it is hoped that after the elections, new governments will implement better economic policies.
Fitch stated in its report that in countries like Pakistan, India, Indonesia, Korea, and Sri Lanka, where elections are still pending, the process of reforms slows down in election years. Elections also make it difficult for countries to obtain loans.
Global credit agencies have expressed hope that Sri Lanka will gain further economic strength from the IMF. Additionally, Fitch has mentioned that there is a possibility of a decrease in global interest rates and inflation during 2024.
The report also indicates that the US Federal Reserve could reduce the basic interest rate three times, starting from the middle of the current year, and by the end of 2024, the interest rate could reach approximately 4.75 percent.
