A credit rating agency Moody’s in its latest report said political uncertainty persists in Pakistan following inconclusive election results, a credit negative. It stated uncertainty around Pakistan’s ability to quickly negotiate a new International Monetary Fund (IMF) programme after the current one expires in April 2024 remains very high. It further stated that on 8 February, Pakistan (Caa3 stable) held its general election, with the vote count concluding on 11 February. As per the recent IMF report, Pakistan’s external financing needs are about $22 billion in fiscal 2025 (ending June 2025) and about $25 billion annually in fiscal 2026 and 2027. The country will need a longer-term financing plan to meet its very large financing needs for the next few years, after its current IMF programme ends in April 2024. Earlier, shares at the Pakistan Stock Exchange (PSX) traded in the green on Wednesday over clarity on the political front, gaining more than 900 points. According to the PSX website, the benchmark KSE-100 index gained 1166.11 points, or 1.9 per cent, to stand at 62,393.03 at 10:43am from the previous close of 61,226.92. It finally closed at 62,153.84 points, up 926.92 or 1.51 percent.

Credit: Independent News Pakistan (INP)