ISLAMABAD [Pakistan], The International Monetary Fund (IMF) has issued a one-star warning about Pakistan's economic future, highlighting exceptionally high downside risks in its latest report. The report has been released ahead of talks on a new long-term agreement between the Pakistani government and the IM. The term program underlines concerns about the country's stability and the challenges it faces, Dawn reported, noting that according to an IMF staff report, "downside risks remain exceptionally high, while the new government has extended the SBA (Standby Arrangement ) policies, the caveat remains that this uncertainty, especially given the high cost of living and other political complexities, could have a profound impact on policymaking. The IMF also warns that policy slippage, coupled with a reduction in external financing, could derail Pakistan's progress towards debt sustainability and PU pressure.In addition to the exchange rate, external stability is threatened by factors such as high commodity prices, shipping disruptions and tight global financial conditions, all of which could increase the country's fiscal challenges, as B Dawn reported, adding to the urgency of the situation. Emphasizing that, the IMF has stressed the importance of timely disbursement of external financing following the programme. While Pakistan recently completed a short-term program of US$3 billion, Prime Minister Shehba Sharif has underlined the need for a new, long-term arrangement to address the country's current economic issues. Last summer, Pakistan Averted a default, and the economy has since stabilized, with inflation falling from a record high of 38 percent in May to about 17 percent in April. However, significant challenges remain, including a high fiscal deficit and stagnant growth, which is projected to be around 10 per cent this year compared to negative growth last year. To address these challenges, Pakistan is expected to seek at least US$6 billion from the IMF. And request additional financing from the fund under the Resilience and Sustainability Trust, Dawn reported.