Fitch Ratings predicts worst situation for Pakistan

The current PML-N government will remain in place for 18 months, after which the technocrat will replace, Imran Khan will remain in jail, predicts Fitch Ratings.

American Economic rating agency Fitch has predicted about Pakistan that the current government of Muslim League (N) will remain in Pakistan for 18 months.

The founding chairman of Tehreek-e-Insaf (PTI) Imran Khan will remain in custody for the foreseeable future. The Fitch report predicted that the current government will do all the economic reforms in collaboration with the IMF, if the current government fails, the government of technocrats will come in Pakistan.

The report further said that the pressure of external payments is an economic risk for the economy of Pakistan, the rate of inflation in Pakistan may decrease by the end of this fiscal year.

The Fitch report also said that the government of Pakistan has set tough economic targets in the budget, the government wants to reduce the fiscal deficit from 7.4 percent to 6.7 percent.

According to the report, the State Bank of Pakistan (SBP) is expected to reduce the interest rate by the end of this financial year, the interest rate can be brought up to 14%.

The report of the international organization said that the difficult economic decisions of the government of Pakistan are paving the way for the program with the International Monetary Fund (IMF).

The report said that independent candidates won a big victory in Pakistan’s February elections, with the winning independent candidate having the support of the jailed PTI founder.

The Fitch report said that protests against inflation in Pakistan’s cities could affect economic activity, and floods and droughts are economic risks for Pakistan’s agriculture.