Moody’s analysts have expressed “credit negativity” due to the divided public mandate and allegations of election fraud, which may cause more political instability. Furthermore, it is not surprising that the rating agency feels this way, considering the rebellious attitude of some key parties. Nonetheless, longer-term political and policy stability cannot be replaced by the SIFC. Due to political unpredictability, the Gulf countries—who have invested billions of dollars in Pakistan—have refrained from joining the market despite the SIFC. The country’s economic destiny will depend on how and when the new coalition handles the Fund notwithstanding the unstable political environment.
