The political crisis engulfing Pakistan is eroding hopes the South Asian country will be able to extend its much needed program with the International Monetary Fund and escape a full-blown debt crunch, analysts have said.

Deadly clashes between supporters of former Prime Minister Imran Khan and police spread across the country after Pakistan's anti-corruption agency arrested Khan on Tuesday.

His arrest earlier this week was ruled "invalid and unlawful" by the Supreme Court on Thursday.