Pakistan’s newly-announced budget for fiscal year 2025 aims to bolster the country’s ongoing negotiations with the International Monetary Fund (IMF) for a new bailout. However, the success of this budget in securing external financing hinges on the sustained implementation of reforms, according to a report by Moody’s.
The global credit rating agency cautioned that rising social tensions due to the high cost of living, potentially exacerbated by higher taxes and future energy tariff adjustments, could hinder reform efforts. Additionally, Moody’s highlighted the risk that the coalition government might lack the necessary electoral mandate to consistently enforce challenging reforms.
