Negotiations on a new government in Pakistan have allayed immediate fears of instability in the nuclear-armed nation following inconclusive elections last week, but the risk of a full-scale economic crisis remains.
Negotiations on a new government in Pakistan have allayed immediate fears of instability in the nuclear-armed nation following inconclusive elections last week, but the risk of a full-scale economic crisis remains. A $3 billion programme from the International Monetary Fund (IMF) runs out next month and securing a new and much bigger one is widely seen as the priority for the new administration. The largest party, the Pakistan Muslim League-Nawaz (PML-N), secured support on Tuesday from the second biggest, the Pakistan People's Party (PPP), and is trying to persuade it to form a majority coalition.
Negotiations for a new government in Pakistan have calmed fears of instability following inconclusive elections, but the risk of an economic crisis remains. The current $3 billion IMF program expires next month, and securing a new, larger one is seen as a priority. Pakistan s debt-to-GDP ratio is already over 70%, with interest payments on debt estimated to consume 50-60% of government revenues this year.