Macro Analysis /
Pakistan

Pakistan: Uncertain politics but economic outlook is clearer

  • Continued monetary tightening and delays in implementing the IMF's preconditions marred December performance.

  • The resumption of the IMF programme is a near certainty, and can trigger rerating. Foreign selling appears to be over.

  • Politics poses risks, with inflation cutting into the PTI's popularity, but risks are priced in going by the < 5x PE.

Raza Jafri
Raza Jafri

Executive Director, Research

Intermarket Securities
31 December 2021