The close result of Pakistan’s election and the ensuing political unrest, according to Fitch Ratings, could make it more difficult for the nation to obtain a funding deal with the International Monetary Fund (IMF) to replace the Stand-By Arrangement (SBA), which is set to expire in March 2024. The country’s credit profile depends on a new agreement, which we believe will be reached in a few months. However, the rating agency stated in a statement that prolonged negotiations or failure to reach a deal would exacerbate external liquidity stress and increase the likelihood of default.