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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.

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