Karachi – April 15, 2025: Global credit rating agency Fitch Ratings has upgraded Pakistan’s credit rating, citing a stable economic outlook. The country’s long-term foreign currency issuer default rating has been raised from ‘CCC+’ to ‘B-‘, while the local currency rating has also been upgraded to ‘B-‘, according to a report by Dawn News.
Headquartered in New York, Fitch stated that Pakistan’s medium-term fiscal deficit is expected to remain around 5%, and anticipates the overall budget deficit to fall to 6% by June.
The agency noted that the upgrade reflects growing confidence in Pakistan’s commitment to structural reforms, which are expected to improve the implementation of the International Monetary Fund (IMF) program and facilitate access to external financing.
Fitch further mentioned that while ongoing global trade tensions could exert external pressure, Pakistan’s limited reliance on exports and market financing helps mitigate potential risks.
It is worth noting that in May 2023, the country was on the brink of economic collapse amid record-high inflation and declining foreign exchange reserves. However, relief came partially through the IMF’s $7 billion bailout program, which helped stabilize the situation.
In March 2025, Pakistan reached a new agreement with the IMF, paving the way for a potential $1.3 billion cash disbursement.
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