February 12, 2024 (MLN): The election outcome points to increased political instability, casting a darker shadow over growth and prospects for securing International Monetary Fund (IMF) aid the country needs to avoid default, said Bloomberg.
With no party winning a majority, and a strong performance by independents backed by Imran Khan (who is in jail and whose party was banned from running), the formation of a coalition government is likely to be challenging and chaotic, it added.
This could lead companies to put investments on hold.
Continued political instability could put a new aid package from the IMF in jeopardy, raising default risk.
The results of the February 08 elections were a surprise. Independent candidates, most of them backed by Khan, won more seats than any major political party, taking 101 of the 265 contested National Assembly seats.
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Posted on: 2024-02-12T09:23:34+05:00