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.
This candid warning came from the World Bank ahead of the new election cycle for the upcoming government to make early choices while making it clear that international lenders
Islamabad, Sep 20 (PTI) Warning that downside risks to Pakistan’s economic outlook remain exceptionally high, the Asian Development Bank’s (ADB) latest report says the cash-strapped country's adherence to an economic adjustment programme through April 2024 will be critical for restoring stability and the gradual recovery of growth.