Pakistan’s Political Uncertainty After Elections Is Credit Negative: Moody’s
Political uncertainty persists in Pakistan following inconclusive election results, a credit negative, says Moody’s Investors Services (Moody’s).
In a report on Pakistan, Moody’s stated that on 8 February, Pakistan (Caa3 stable) held its general election, with the vote count concluding on 11 February.
The results point to a hung parliament because no party has won enough seats—at least 134 out of the 266 contested seats—to form the majority government.
While negotiations between parties to form a coalition government are currently underway, prolonged delays will raise political and policy uncertainties at a time when Pakistan faces significant macroeconomic challenges, particularly its very weak external and liquidity position.
(The writer is a Former Chairman and Managing Director PIA, Former Federal Minister of industries and production)
Sad But Reality