Pakistan, Dec. 26 -- The absence of a majority in the Senate may hinder the adoption of legislation needed to achieve IMF program objectives, which could jeopardize the availability of external financing, besides a potential blacklisting by the Financial Action Task Force; FATF could result in a freeze of capital flows and lower investment to Pakistan.

This has been stated by the International Monetary Fund (IMF) in its latest report "First Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria".

The report stated that notwithstanding the encouraging start of the program, risks to the outlook remain high. Growth is currently weak and significant fiscal adjustment is ne...