IMF Says Pre-poll tensions may hit Pakistan’s policy decisions, reforms

The International Monetary Fund (IMF) has raised concerns about growing risks to Pakistan's economy, citing geopolitical conflicts in Gaza and Israel as potential sources of pressure on the exchange rate and external stability.

Additionally, the IMF highlighted the impact of political tensions ahead of upcoming elections on policy decisions and reform implementation. The increasing debt burden in Pakistan was identified as another risk by the IMF.

The organization urged the country to implement structural reforms, including raising gas prices and strengthening internal control systems. It emphasized the need for timely external financing to avoid reliance on expensive domestic financing and potential adverse effects on private credit. Despite recent positive developments, the IMF emphasized the persistently high risks and challenges facing Pakistan's economic sustainability.