Pakistan may require another IMF bailout
Thursday, October 12, 2017
Subject
Pakistan's deteriorating macroeconomic situation.
Significance
A World Bank report on October 8 identified increased macroeconomic vulnerabilities for Pakistan. The difficulties come just over twelve months after the end of a three-year loan from the IMF worth 6.6 billion dollars.
Impacts
- Pakistan’s civilian government will be under pressure to repair US ties and preserve Coalition Support Fund payments.
- A worsening macroeconomic situation may increase the appeal of Islamist parties.
- Rising unemployment will increase the likelihood of the PML-N losing the next election.